If you’re thinking about mortgage refinancing you might wonder what downgrading the United States credit rating means for interest rates. Everyone assumed that downgrading US credit would result in higher refinance rates; however, the opposite has proven true, mortgage refinance rates have continued to decline this week. How long before interest rates go up is anyone’s guess. Here’s an article on CNN.com about the state of mortgage interest rates after the downgrade:
At least one fear was not realized amid Monday’s meltdown: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor’s downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market.
While it’s not clear what the long-term fallow from the downgrade will be you can count on mortgage rates and fees going up as a result. If you’ve been on the fence about your mortgage refi now is the time to take advantage of today’s low refinance rates.
Did you know that one of the most common mortgage mistake when refinancing is not negotiating fees? Getting a good deal on your mortgage refinance depends on how much you pay for loan origination and closing costs. These fees vary from one lender and originator to the next and are completely negotiable.
Simply haggling can save you thousands of dollars on your next home loan. You can learn more about paying less for your next mortgage refi by checking out my free Underground Mortgage Videos.