By: DEREK KRAVITZ is the AP Business Writer. He posted an article today outlining a Guide to Mortgage Refinancing that spoke to the current circumstances of record low rates. Here is a summation: See the enitre article here.http://washingtonexaminer.com/news/2011/12/guide-mortgage-refinancing-rates-hit-lows/2027651
Rates are lowest ever: 3.91 percent for a 30-year home loan and 3.21 for a 15-year loan.
Rates have been around 4.0 percent for 8 weeks
Low Rates and low housing prices create a perfect storm for buying.
However, refinancing is not increasing. This is due to
- lack of home equity
- low credit scores
- no cash to refinance or buy.
What are the consequences of refinancing
You pay less interest on their loans and thus end up with more money to spend, save or invest. A homeowner with a $200,000 mortgage at 6 percent who refinances down to 4.5 percent, saves $3,000 a year.
Read more at the Washington Examiner: http://washingtonexaminer.com/news/2011/12/guide-mortgage-refinancing-rates-hit-lows/2027651#ixzz1hJJj0dEY