Refinance Your Mortgage Locally, as Mortgage Rates Drop to 5% Level

­­With recent Fed action, interest rates on 30 year fixed rate mortgages have fallen across the country to 5% and, for the best credits, even lower.

These are the lowest rates since 1971, so everyone should look at refinancing their mortgages. (If you took out your mortgage (or re-financed it) in 2006-2008, or anytime before 2002, it’s a huge savings.)

There are a couple of ways to benefit:

1) First, know both your mortgage rate and current refinancing rates (and hidden costs). Generally, if the current rates are at least 1% lower than the rate on your mortgage, refinancing can save you money, even after transaction costs.

2) Second, if you have an adjustable rate mortgage think about locking it in for a longer term at today’s low rates, among the lowest in the last 25 years. Or if you know you will be moving in the next few years, think about locking in a lower rate 5 year adjustable mortgage.

3) Third, if you have lots of expensive credit card debt or second and third mortgage debt, consider paying it off with a new first mortgage that puts all your debt in one low-rate long-term obligation.

To get these advantages, you’ll generally have to be a good credit and the value of your house must be above the amount of the mortgage.

[But if your credit isn’t so good, and you’re having trouble making the payments on that house you bought in the last 3 years you may be in even more luck. You may qualify for an FHA-insured mortgage under the federal government’s Hope program, where the face amount of your mortgage may also be reduced.]

To apply easily to several banking institutions at once, visit our mortgage area.

And send this article on to your friends: they could use some more money in their pocket too, and that will help the economy.­