| Homeowners are very interested to know where | | | | banks a chance to catch up on their paperwork from |
| mortgage interest rates will be going. Refinancing or | | | | homeowner applications which have been flooding in |
| getting a home loan modification when interest rates | | | | since Obamas "Making Home Affordable Plan" |
| are their lowest, saves a lot of money from | | | | announcement. Now, with the increased rate, the |
| unnecessary interest payments. Here are my home | | | | lenders have pretty much stopped the applications |
| mortgage rate predictions for mortgage rates in 2009: | | | | from homeowners who just want to save money, and |
| Right now, mortgage rates are around 5.19% for a 30 | | | | are focusing on homeowners who need to save their |
| year fixed rate home loan. Remember though that | | | | home. Once these applications are done, the mortgage |
| only homeowners who have a good FICO score, and | | | | lenders and banks will be hungry and ready for a new |
| either 20% equity in their home or 20% cash down | | | | round of home loan modifications and refinancing. So, |
| can take advantage of the lowest rates. However, | | | | when this happens, around mid October I predict, home |
| homeowners with less than perfect credit should still | | | | interest rates will drop by .5% or so to an average of |
| jump at the chance to refinance or modify their home | | | | 4.69% for a 30 year fixed rate home loan. |
| loans. Even though rates are not their lowest, they are | | | | So, basically, a homeowner who is looking for a home |
| still plenty low to save millions of homeowners | | | | loan refinancing or modification should wait, if they can, |
| hundreds of dollars per month. However, if you can | | | | until October and get what I predict will be the lowest |
| wait at all to go through with your refinancing or loan | | | | interest rate of the year. However, if you are facing |
| modification, I would, and here is why. | | | | foreclosure, or serious financial hardships, you should |
| Recently, home interest rates have been increased | | | | take action now and do something about it. The |
| across the board by about .5%. While this is not a | | | | situation will only get worse, and more costly to get rid |
| extreme change, it did allow the mortgage lenders and | | | | of. Do something now and ensure your financial future. |