Mortgage rates, once again, at all time low - MSNewsNow.com - Jackson, MS

Mortgage rates, once again, at all time low

Posted: Updated:

By Ashley Conroy - email

JACKSON, MS (WLBT) - Mortgage buyer Freddie Mac reported Thursday that rates have once again struck an all-time low, dropping 10 times in the past 11 weeks.

Fixed 30-year loans are at 4.32 percent, the lowest recorded in about 40 years.

15-year loans are the lowest in almost 20 years at 3.83 percent.

As the housing market is still in its slump, the Mortgage Bankers Association reports that applications for mortgage rates have boosted by almost 3 percent.

Mortgage Financing Expert Bo Smith says there are two main reasons for consumers to refinance.

"Are you trying to save monthly.  Are you trying to retire your mortgage a lot sooner, or are you trying to do a combination of both," Smith said.

Smith says often consumers say they want both, even when refinancing isn't the best option.

"And that may not necessarily add up for a variety of reasons.  One of which their loan amount is not that large," said Smith.  "Number two, they haven't had much principle reduction pay down over five years."

He also says refinancing may not be the best option for people who know they are going to move within in a few years.

However, for those who are ready to refinance, he recommends to have a mortgage statement ready, a monthly mortgage payment breakdown, taxes and insurance information available, and know whether the loan is FHA or conventional.

"Because when they communicate that to a mortgage officer, those are some of the questions immediately, up front, that mortgage officers are going to want to know to see if there truly is a net-tangible benefit," Smith said.

According to Smith, the important component for consumers to remember is that the market has changed.

"Just understand, that you know today is not yesterday it's a different environment, and so we're going to ask for a lot more than we did in years past, and that sometimes is not channeled out effectively to everybody," he said.

For more tips on refinancing and whether this is the best option for you, go to: www.boKnowsMortgages.com.

©2010 WLBT. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. 

Powered by WorldNow