The fiasco we’ve all been watching in the news has not affected mortgage refinance rates; however, should the United States credit rating suffer many analysts are predicting that interest rates will go up. If you’re considering or are in the process of mortgage refinancing consider locking instead of floating your refinance rate to avoid losing it. Here’s an article on USAToday’s website explaining the reason for locking your lowest refinance rate:
So far, the debt-ceiling fracas hasn’t affected mortgage rates. The average rate for a 30-year fixed-rate mortgage for the week ended July 28 was 4.55%, only slightly higher than a week earlier, according to Freddie Mac. Rates slipped on Friday after the Commerce Department reported that the economy grew at a lower-than-expected 1.3% in the second quarter.
While you’re in the process of mortgage refinancing it’s important to pay close attention to fees like the loan origination fee. How much should you pay your loan originator? One percent is a perfectly reasonable fee for the broker’s work. Also, if you’re being charged a rate lock fee it’s time to shop for another broker/lender. Mortgage rate lock fees are pure junk and do nothing but drive up your cost for mortgage refinancing.
You can learn more about paying less for your next home loan by avoiding unnecessary fees by checking out my free Underground Mortgage Videos.