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Refinancing or getting a home loan modification at the lowest interest rate is the best way a homeowner can save a lot of money every month on their mortgage. Earlier in the year, homeowners flocked to take advantage of a 4.69% mortgage rate and refinance or modify their mortgages. A lot of homeowners pay 9% or more in interest rates, and the rate offered earlier in the year was a great chance to save a lot of money. Recently though, a .5% increase in mortgage rates was enabled. I thought this would happen as a result of banks and mortgage lenders being overwhelmed with paperwork and customers looking to save their home from foreclosure, or take advantage of the ultra low interest rates.
The paperwork quickly piled up, and the rates were increased to help curb the flow of mortgage refinancing and modification applications. Increasing the rates by .5% stopped homeowners from applying unless they were truly in need of saving their home. I think though, and this is where my predictions begin, that mortgage rates will drop to their prior lows, and soon. For mortgage rates in 2009, I predict that the current mortgage rate of 5.19% will be reduced by .5% to match their prior lows of 4.69% for a 30 year fixed rate home mortgage. I think that this will happen around the middle of October this year, 2009. These rates should last until about April 2010. The rates will be lowered due to mortgage lenders and banks being ready to take on new customers and refinancing or mortgage modification applications.
If you can, I think you should wait to refinance or get a modification until the middle of October of this year, and see where the rates are at.
However, if you are facing financial hardships, or are in danger of losing your home, take action now. Related Current Mortgage Interest Rates and Predictions For 2009 Articles
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