With Mortgage rates dropping 9 times in the past 10 weeks, I’m refinancing!
Keeping your finances in good order during a recession is key to building wealth in the real estate market over the long-term. The average rate on 15-year fixed loans dropped today to 3.86% from 3.9% last week. For the ninth time in the past 10 weeks mortgage rates have been dropping to their lowest levels in decades. Starting in 1971 Freddie Mac began tracking 30-year interest rates, this week they reported 30-year fixed loan rates at 4.36% vs 4.42% last week. The 15-year rate is at its lowest since they began tracking in 1991.
With 82.4% of all new US loan activity categorized as “refinanced loans and mortgages” refinancing is now at its highest level since May 2009. Low rates have sent borrowers back to their banks to re-negotiate home loans at favorable terms, allowing homeowners to put a little more money back into their wallets each month. Shortening the amortization, refinancing at lower interest rates while keeping the same monthly payment was also desirable to current homeowners that wanted to repay their mortgage quickly. You will need to provide proof of income, stable employment and a good credit history to qualify for the best rates and terms.
Variable mortgage rates for one-year terms fell to 3.52% and five-year terms remained unchanged at 3.56%.
Lenders are currently taking a closer look at the security for the mortgages they are approving and will often add fees known as points to the base rates posted by banks and lending institutions. Owner occupied and income producing properties are considered preferred security over non-income producing real estate such as raw land.
Contact your local bank for more information. For mortgage and loan rates in the Turks & Caicos Islands contact us and we’ll put you in touch with our local lenders. www.coldwellbankertci.com.