Mortgage rates have finally started going up. If you’ve been procrastinating your mortgage refi because you want the best refinance rates you can still take advantage of historically low financing if you act soon. According to this article from HSH.com 30-year fixed mortgage rates have started inching up:
HSH.com’s broad-market mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages rose by two basis points last week, landing at an average of 4.77%.
FHA-backed 30-year fixed-rate mortgages are arguably driving whatever sales of homes to first-time homebuyers are occurring, and also give low-equity refinancers an option to pursue. Rates for these products moved four basis points higher to close the week at 4.44%.
Given the wide differential in interest rates, at least some borrowers should be considering hybrid 5/1 ARMs; whose five-year fixed periods now average just 3.39%, up just three hundredths of a percentage point from the week prior.
Once you’ve decided to go forward with mortgage refinancing you’ll want to avoid paying unnecessary fees and markup. Common mortgage mistakes include overpaying the loan origination fee paid to your broker as well as paying unnecessary fees at closing. Many homeowners don’t realize that the fees you pay including the broker and lender closing costs vary from one lender to the next and can be negotiated.
The fees you pay at closing determine how good of a deal you’re getting on your refi because you’ll have to recoup these expenses before gaining any benefit from your lower payment amount. The more you pay at closing the longer it’s going to take to break even.
You can learn more about mortgage refinancing without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.