If you’re considering a new home loan and want the best refinance rates, the state of our economy is providing a boom for mortgage refinancing. According to HSH.com the faltering US economy is responsible for mortgage rates hitting their lowest levels of 2011.
The current economy’s underperforming reputation took another blow last week as several indicators turned decisively south before we saw improvements in employment and oil prices later in the week. This continued lack of economic growth caused mortgage rates to fall again last week, bringing rates down to new 2011 lows.
If you’re in the market for a new home loan there’s no time like the present to take advantage of today’s best refinance rates. This is especially true if your last home loan included markup for Yield Spread Premium, meaning you’ve been paying more than you should have been all along.
The rules regarding this Paid Outside of Closing or POC charges have changed for 2011, so it’s important to understand how this can be applied to your advantage. Mortgage brokers are no longer allowed to charge you a loan origination fee and markup your interest rate for the commission known as Yield Spread Premium from the lender. Your bank is still exempt from the rules that protect you from predatory lending practices; because of the loophole there’s no guarantee that you’ll get today’s best refinance rates from your bank.
Even though interest rates are at their lowest levels of the year the main factor that determines how good a deal you’re getting is the amount of fees you pay for loan origination and closing because you’ll have to recoup these expenses before you realize any savings from the new lower interest rate. You can learn more about paying less for your mortgage refi by checking out my free Underground Mortgage Refinancing Videos.