Radio Show: Low Interest Rates: Here is a simple rule that works most of the time. If the stock market goes up, so do the mortgage rates and if the market goes down, the mortgage rates fall. In recent couple of weeks we have seen mortgage rates touching the 4% mark on 30 year fixed loan programs. For many lower rates mean, refinancing their home. However they may mean lot more beyond that to others who currently do not own or may want to look at real estate in a whole new way – as an investment. The good thing is the home prices have climbed over past two years and now the rates have dropped. This creates a great refinance opportunity for the many. These are people with FHA loans, low down payment borrowers and also borrowers with mortgage insurance. Higher home prices mean home owners have more equity in their homes. This also means their original loan balances are low compared to current home value. That means LOW loan to Value ratios. That means, no mortgage insurance if the loan to value ratios are 80% or below. That would be average savings of up to $500 per month just on the mortgage insurance alone. Imagine what you can do with extra $6000 dollars a year. You will also save based on the lower interest rate on mortgages.
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