Time to Refinance: Interest Rates at Lowest in 50 Years

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BY ANDERS HOSTELLEY – Interest rates are at their lowest level in 50 years. These rates may be available for the next couple of months, however, I suggest that if you are interested in refinancing, you take action now.


Today’s 30-year fixed rate is 3.875 percent with and APR of 4.064 percent. For a 15-year mortgage, rates are as low as 3.25 percent with an APR of 3.581 percent.

Here are some reasons to refinance now:

First, no one really knows where mortgage rates will be in the next few months and therefore locking in now makes sense in order to not miss this golden opportunity.

It may make sense for you to bring money into closing to pay down your mortgage loan to qualify for a mortgage.

In the third quarter of 2010, almost one third of borrowers who refinanced their mortgage came in with money at closing.

The value of your home is a big factor in being able to refinance and in coming months home values may decline.

Lastly, your mortgage loan may be eligible for a Fannie Mae or Freddie Mac program that allows you to refinance your mortgage with little equity.

These programs are slated to expire early next year, so once again it makes sense to inquire now about the advantages of refinancing.

Anders Hostelley is a Home Loan Manager at Honolulu HomeLoans, Inc. Reach him at ahostelley@honhl.com and 808-681-7500.