CNC Mortgage Blog

The drop in interest rates has all the banks busy. Rates are down to the 5.0 and 5.1% rate on 30 year fixed mortgages and 4.875% on the 15 year mortgages. Adjustable rate mortgages are much higher so it doesn’t make sense. It might take 30 to 45 days to close a loan.

The rates came down on December 3, 2008 and have remained low with a bit of up and down cyclying.

The government is talking of rates of 4.5% for homebuyers. (Not just first time homebuyers.) So this should get people off the fence that have been waiting. (We will probably see some flipping amongst family members.)

It is also a good time to consider refinancing so keep in mind the following points:

How long will you remain in the house?

What is your present rate on your mortgage ( or mortgages if you have a second)?

What will be you closing costs on the new loan?

Do you have at least 95% equity in your house?

How much will you save per month?

If your closing costs divided by the savings are larger than the time you plan to stay in the house, you should consider refinancing.

Since so many people won’t be getting a raise next year, a lower mortgage payment is like getting a raise!!