Interest Rates
In the late 1970’s until 1985, as some clients will remember, interest rates on home mortgages were at 15% and over. It was not a time I would want to see repeated. It was not until almost ten years had passed that we had rates under 10%. It was 1993 before they were under 8%. It was not until after 2000 that we saw rates under 6%.
We are noticing that current interest rates for both refinancing and the purchase of homes are still very attractive.
Rates for 15 year mortgages with good loan to value and good credit are in the low 4% range, and even rates on investor loansunder similar circumstances are in the high 4% to low 5% range. 30 year rates are still competitive bothon investor and residence loans.
While most of our clients have refinanced and either paid off or otherwise secured their properties, there may be some that might benefit from a review. I would be especially concerned about those properties with mortgage rates that are not fixed.
If you have a mortgage that is at 5.5%, circumstances may be such that you would be able to refinance into a 4.2% loan, and it might make sense to do so. If you have questions, please call your mortgage company, your bank, or ask us for our opinion. If you would like, we can provide you with a referral to a mortgage expert with whom we work.
While no one can foresee the future, we would not want our clients to miss what may be an opportunity to take advantage of historically lower interest rates. I don’t believe interest rates will remain at these levels indefinitely.
Date Posted:6/21/2010
Last Reviewed: 6/21/2010
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