Getting the lowest interest rate for your current mortgage is the best way to ensure you are getting the best refinancing help possible. When will the interest rates be at their lowest? Here are some mortgage rate predictions for 2010.

Currently, a typical fixed rate mortgage can be locked in for around 5%. This is much lower than homeowners who bought their home 5 or 10 years ago. In fact, some homeowners pay double that amount and are closer to a 10% interest rate. Unfortunately, I do not think that these low rates will last for long.

Right now, interest rates are so low because of Government programs designed to help homeowners refinance. Furthermore, since the housing market is in pretty bad shape, interest rates have been reduced to attract new buyers. What this means for existing homeowners is that there is a chance to get a first-rate refinancing deal exists right now.

Homeowners who have been considering refinancing should take action right away. While interest rates are low, they can not, and will not, stay that low for long. In fact, I predict that by April of 2010, mortgage rates will climb to more or less 6.25%. This is a significant increase over the current available rates, even if it is only 1.25%. This minor increase will in reality cost homeowners thousands of dollars over the duration of their loan.

I think the current rates will rise due to mortgage lenders and banks being in better structure by then. Even when the economy is in poor shape, and the housing market is bad, homes values have not dropped any further than they currently are. This can mean that the market has “bottomed out” and the only way to go from here is up. Be aware that it may be a gradual recovery, but it will be a recovery. Once the housing market has some stability, the interest rates will go up. The mortgage lenders and banks will once again put profits first, and the homeowner next. As opposed to now, where the homeowner is for the most part important, and profits are in second place. Since so many homeowners at this time are at risk of losing their home, a lender or bank would more willingly take a little profit and help a homeowner, than take a potential loss and go through a foreclosure.

This entry was posted on Wednesday, January 20th, 2010 at 8:13 pm and is filed under Finance News, Loan Parlor, Universe Of Investment. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.