30-Year Mortgage Rates Plummet and Prompt Refinancing
Freddie Mac’s weekly nationwide Primary Mortgage survey showed the fifth consecutive weekly decline in 30-year mortgage rates. Declining from 5.93 percent to 5.78 percent, this was the lowest level since February according an article in the South Florida Business Journal, and is leading many mortgage holder to re-financing.
Re-financing can be a good move for many considering that rates have increased for many and the new lower rates will make a difference in weekly, household budgets.
In fact, Wikipedia offers several reasons for refinancing:
- Reduction of interest costs by presumably refinancing at a lower rate.
- Extending the due date for repayment of existing obligations easing personal finance burdens.
- Lowering the regular, periodic payments.
- Reducing risk such as changing from a variable rate mortgage that can be dangerous in uncertain economic times to a fixed rate mortgage.
- Raising cash.
In fact, earlier this week, The Mortgage Bankers Association confirmed that refinancings are at their highest level in the past four months due to the lower interest rates.
September 20, 2008 – 1:46 pm