Mortgage rate at all-time low - MSNewsNow.com - Jackson, MS

Mortgage rate at all-time low

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By Ashley Conroy - email

JACKSON, MS (WLBT) - In a questionable economy, Thursday, mortgage rates have hit an all-time low.

According to the Mortgage Bankers Association, consumers can get a 4.5-percent interest rate for a 30-year loan and a 4.05-percent rate for a 15-year loan.  

Despite these record rates, since the federal tax credit ran out, home sales are down.

"We want to caution people to not jump into the market simply because interest rates are low," said Executive Director for the Mississippi Mortgage Bankers Association Quentin Whitwell.

Because home sales are down, Whitwell said "buyers" are not taking advantage of these rates, but rather home "owners" looking to refinance are the reason.

Rates were at all-time lows last year, around 5.5 percent, and because of this, Whitwell said the re-financing trend is slowing.

"So many people have already done it in the last six months to year, the very fact that we're at historic lows, there's not enough spread for people to actually go do it."

In addition, Whitwell said if you are having trouble paying your mortgage to contact your lender immediately and try to work out deal before leaving foreclosure as the only option.

"Because banks right now are willing to work with their customers, more so than ever before," said Whitwell.

For those homeowners wishing to refinance, the MBA of Mississippi recommended to have extra savings in your banking account, pay off credit card debt that may hinder a credit score, and clean-up any bad credit history.

Whitwell said the best scenario to consider refinancing is if you're currently paying around 5.5 to 6.0 percent for your mortgage.

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