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Why Mortgage Rates Are So Low and What You Should Do About It

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If you’re still on the fence about your mortgage refi and are waiting for the best refinance rates there’s no time like the present. According to Peter Miller at HSH.com, the recession is responsible for mortgage refinancing rates dropping to a five low.

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Still waiting on things to get better… When recessions end the reasonable expectation is that things will get better. That has certainly been true for some sectors of the economy, say large financial institutions and major oil companies, but not for all. Another expected byproduct of better times should be higher interest rates. After all, in an expanding economy there should be more competition for dollars as companies expand, so mortgage rates and other financing costs should trend higher.

http://blog.hsh.com/index.php/2011/05/why-mortgage-rates-are-still-so-low/

Mortgage refinancing rates don’t have much lower to go and trying to predict interest rates is a lot like herding cats. One factor that determines how good of a deal you’re getting for your mortgage refi is the fees you pay. Overpaying the origination fee or closing costs lengthens the amount of time it takes to recoup these expenses before you’ll realize any savings from your new home loan.

Recent changes in the laws regulating mortgage broker compensation prohibit brokers from charging you a loan origination fee and taking a commission from the lender for marking up your interest rate. Keep in mind that banks are still exempt from the Real Estate Settlement Procedures Act including all of these new rules for 2011. Your bank can happily go on charging whatever they like for mortgage refinancing.

You can learn more about getting the best refinance rates your next home loan without unnecessary markup or junk fees by checking out my free Underground Mortgage Refinancing Videos.

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