Interesting note that supports our views on the unlikelihood of rates
moving much lower - last Friday, Jack Koskinen, interim chief
executive of Freddie Mac, said that home loan rates are near the
bottom and that any further decreases will be small. Mr. Koskinen
commented on mortgage rates after he attended the meeting between
President Obama and the CEO's of the financial services companies
on Capitol Hill. Perfect opportunity to get the word out to clients who
are sitting on the fence waiting for that 4% rate...now is the time to
purchase or refinance as rates are at historically low levels, and not
likely to move much lower.

Wendy Kotowske
Home Mortgage Consultant
Wells Fargo Home Mortgage
(850) 269-5803 Tel
800-870-4497 Toll-free
850-499-1336 Cell                        
866-608-9271 Fax
I can do loans in all 50 states.

Wendy.Kotowske@wellsfargo.com email address
www.wfhm.com/wendy-kotowske website

12/29/2008

 

Don't miss the refi window

Four things to consider when refinancing your mortgage

By Amy Hoak, MarketWatch

Last update: 3:31 p.m. EST Dec. 28, 2008

Comments: 137

 

CHICAGO (MarketWatch) -- Lured by low mortgage rates, many homeowners have been rushing to refinance. Interest is gaining for good reason: Eligible borrowers can lock in rates that haven't been this attractive in decades.

 

"With interest rates hovering around 5% for conforming loan amounts, homeowners should begin to seriously consider refinancing into a new fixed-rate mortgage, especially if they currently have an adjustable-rate mortgage," said Lisa Weaver, president of Columbia, Mo.-based Certitude Financial Group. And don't drag your feet, either, she said.

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Rates on jumbo mortgages are still high, she said, but the national average rate on a 30-year fixed-rate conforming mortgage is the lowest in at least 37 years, according to Freddie Mac. The conforming loan limit in 2009 is $417,000 for most areas of the continental U.S., although in designated high-cost markets it will be up to $625,500.

Given the volatility in the mortgage market this year, Greg Gwizdz, national retail sales manager for Wells Fargo Home Mortgage, also advises homeowners to be proactive. It's possible that rates will be low for a while, but in this turbulent economy, it's not best to gamble that tomorrow will bring a better deal.

"Don't sit back and say I'm going to wait for something to happen and for rates to go even lower," he said. If you're able to refinance into a mortgage that will be better for your finances, don't pass up the opportunity, Gwizdz said.

Below are other points to consider:

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