| Mortgage interest rates have remained low throughout | | | | property and home go up. This will lead to a slight |
| 2009. This was due to a bad housing market, bad | | | | increase in interest rates due to less of a need to |
| economy, and stimulus programs launched by the | | | | assist struggling homeowners avoid losing their home. |
| Obama administration. Many homeowners have taken | | | | Also, by the time interest rates rise in 2010, many |
| advantage and refinanced their mortgage. However, I | | | | homeowners would have already gotten a refinancing, |
| think in 2010 things will change and mortgage rates will | | | | or by this time have lost their home. |
| rise. | | | | Mortgage lenders and banks will not be as hurting in |
| Right now, mortgage interest rates are very low due | | | | 2010 as they were in 2009. This means that they will |
| to Government interference, a bad economy, and a | | | | be more selective when approving homeowners for |
| bad housing market. In an effort to help homeowners | | | | refinancing. Throughout 2009, nearly any homeowner |
| the Obama stimulus program also contributes to the | | | | could find financial relief through refinancing a |
| low interest rates. This has led to many homeowners | | | | mortgage. While many people can still benefit from |
| looking to refinance a mortgage in 2009. | | | | refinancing in 2010, it will come at more of a cost. Right |
| While I do not predict that interest rates will | | | | now an average 30 year fixed rate mortgage has an |
| dramatically increase, I do think they will rise by about | | | | interest rate of around 5%. I predict that in 2010, |
| 1.5% in 2010. While many homeowners will still be able | | | | interest rates for the same mortgage type will rise to |
| to benefit from refinancing a mortgage, some people | | | | around 6.5%. This is still much lower than many people |
| will lose the benefits of it due to the slight interest rate | | | | pay, yet high enough of an increase to make |
| increase. I think we have seen the bottoming out of | | | | refinancing a mortgage not so beneficial. |
| the housing market, and throughout 2010, both the | | | | Homeowners who need to get a mortgage refinance |
| economy, and housing market will recover. While the | | | | should take action now. The longer you wait, the |
| recovery may be slow, it will be positive progress. | | | | worse your situation will be and there is also a potential |
| As the market and economy improve, so will | | | | mortgage rates will rise, as I predict. Contact a |
| homeowners situations. Many homeowners will see | | | | mortgage lender or bank and ask about your |
| the their homes equity value rise, or the value of their | | | | mortgage refinancing options. |