After hitting shocking lows over the Fall of 2010 interest rates on government-backed loans have been slowly inching higher since then. Nevertheless rates on 30 year fixed loans are still currently in 4’s on average, in the high 3’s in some cases for 15 year mortgages, and even lower on some 5 year and 7 year ARMs. So if you have a mortgage with a rate in the 5’s or higher and plan to own your home for five of more years now is the time to look into locking in a lower interest rate. It is no secret that the rates are being artificially compressed by the Fed right now but sooner or later rates will go back up to more normal levels and the chance to lock in rates not seen in 50 years will pass for good.
December tends to be a really good month to get the ball rolling on a refinance because borrowers tend to procrastinate getting started due to the holidays. That leaves extra time for authorized lenders to help people who don’t procrastinate. So if you have a fixed interest rate at 5% or higher or an ARM that you would like to fix in, contact us in the sidebar right away to see about taking advantage of the government-backed mortgage refinance programs.