Mortgage Refinancing Rates – Why 10 Year Fixed Mortgage Rates Is Currently Available
In the current economic climate, home owners will certainly want to know what the rates on 10 year fixed mortgage loans are. This type of loan offers a homeowner the security that they will be able to make their monthly mortgage payments. It is important to note that rates for this type of loan are likely to change dramatically in the next several months. The reason for this is the unstable nature of the economy. With all the factors working against us, it is important that we understand what causes the factors to change.
One major factor driving the rates on mortgage loans right now is the fact that the American economy has been in recession for nearly two years now. Home prices have dropped by about forty percent in some areas over the past year. While this may not seem like much, this amount of drop has caused a significant impact on home loan mortgage payments. Home owners across the country have experienced decreases in their mortgage payments. As a result, many of these homeowners will no longer be able to make their monthly mortgage payments.
Right now, lenders are tightening their lending requirements. They are requiring more income, credit score and loan history information before approving a mortgage loan. Lenders are becoming more strict about whether or not a home owner can qualify for a mortgage loan.
Naturally, as the mortgage industry becomes more regulated, the interest rates will decrease. It is also a good idea to take advantage of these interest rate decreases now while they are still low. Interest rates are always going to be lower during a recession. With that being said, it is very important to analyze the reasons that have caused the current recession. In order to determine which of the reasons will have the most impact on your mortgage rate, you must sit down and do the research.
With this in mind, it is important to identify what made the recession occur in the first place. Some people believe that the sub-prime mortgage fiasco has caused the current housing crisis. Others blame the rise in oil and natural gas prices. Still others blame both the Bush administration and global warming.
Regardless of which group you fall into, it is important that you find out where you went wrong. The last thing you want to do is purchase a home and then find out that you cannot make the payments. If home owners fall into one of the three categories, they should look to refinance their mortgage loan prior to foreclosure.
It should be clear that lowering your mortgage rates is important for financial purposes. However, you also need to consider if refinancing will have a negative impact on your overall credit score. Most experts recommend not lowering your mortgage rates until you have done your research and found the perfect lender for your situation. Lowering your mortgage rates today will have a negative impact on your credit score in the near future. This is why it is important to compare different mortgage lenders before making a final decision on a loan.
If you currently own a home but you are facing financial difficulties, refinancing may be a good option for you. You can get the best fixed mortgage rates by doing your research and finding the right mortgage lender. A mortgage broker can help you locate a good lender and help you negotiate the best terms available. Remember, the mortgage rates you pay may affect your long-term credit rating.