The Current Outlook on Low-Mortgage Rates

With everything that has been taking place in the past few months with mortgage giants Fannie Mae and Freddie Mac, there is no doubt that families and individuals are feeling anxious about their finances and home's futures.

The trigger of the real-estate boom that the country had been going through mostly throughout the last four refinancing mortgage five years was due in large part to low-mortgage rates. 30-year mortgage rates went down as much as 6.32% in 2005 which made the possibility to buy property much more accessible to those who were unable to before, especially those earning low-incomes.

Ultimately however, people's finances began to spiral out of control and although home- buyers were reveling in low-mortgage rates, the real estate reality was very different.

The government take-over of Fannie Mae and Freddie Mac during the summer of 2008 was distressing mortgage refinancing best. Neither had sufficient capital to sustain themselves throughout the crisis, consequently making a government take-over necessary. Both Fannie Mae and Freddie Mac control of United States mortgages and the take-over consequently drove rates down a staggering 6.2%. The real estate bubble burst and people were seen dealing with sudden and unexpected foreclosures.

The question now is: How does the housing market look now? Will low mortgage rates continue and for how long? As of last week (the week of September 15), mortgage rates had fallen to 5.78% down from the previous week's 5.93% which motivated a significant amount of buyers to apply for loans. The 15-year fixed mortgage rates are now at 5.35% while one year adjustable rates are at 5.03% (source: iht), making low-mortgage rates likely to continue.

Despite these low-mortgage rates, the housing market is not likely to look much better in the near future. According to the National Association of Realtors, the median national home price went down 9.5% to $203,100 indicating that people are now more reluctant to apply for loans because of the current financial crisis the country is facing.

The U.S. government is now seeking to pass a $700 billion financial package that would bail out financial institutions in peril, but if passed, that does not mean that the housing crisis is going to fix itself over time. Though low-mortgage rates exist now, rates continue to fluctuate and can by no means be considered "stable." As long as investors continue purchasing bonds, investors will be less reluctant to keep interest rates down.

As long as you, or anyone else wishing to apply for mortgages has a good credit history and a record of paying on time, then the eligibility to obtain loans will be more likely. Due to the current economic crisis though, banks will be much more careful in handing out loans. Obtaining credit will require a much more careful examination of records which in turn will affect the housing industry despite the low-mortgage rates being offered. People affected may include younger individuals wishing to purchase property or those in general who have never bought a home before. In the end, the better credit report, the more favorable rates for your home will be given.

Low-mortgage rates are not only an American issue though. They are seen overseas in places such as England where approval rates are increasingly more difficult to obtain as banks there have seen the crisis in the United States and are now more cautious in how they themselves handle their housing market which has also been seen in the world's second largest economy, Japan.

Despite the rates maintaining themselves relatively low, some prefer to wait for rates to dip even lower as is the case in Hawaii where even though mortgage and interest rates are low now, the fluctuation in rates cause people to believe that better rates are yet to come. These cases are not only seen in Hawaii though, but throughout the rest of the country as well.

Wherever home buyers may be, the outlook for mortgage rates remains uncertain because of the changing regulations banks are now going through as a result of the problems the home markets have gone through as well as the rise in foreclosures people are now seeing in their own communities. It is ultimately up to the buyer along with the sound advice of their banker that a decision on buying a home should be taken. Only then should a choice be made because the long-term consequences may not only be damaging to the individual, but as seen by today's current crisis, everyone else who may own a home as well.

Mauricio Navarro is writer and adviser to CompareMortgageQuotes.ca - A Toronto mortgage comparison website. CompareMortgageQuotes.ca is Canada's one-stop online source for the most popular Ontario Mortgages -mortgage loans for purchases, home loan refinancing, home mortgage rates, home loans for repairs, and more!

Select the Best Mortgage Lender

Most borrowers ask the obvious questions about fees, interest rate and term. But there's so much more you need mortgage refinancing know to get the best mortgage possible. In your search for the best mortgage lender there are certain steps you can take that will increases your chances of success. Here is a list of questions you want to ask so you can find the best mortgage lender to work with.

First what is their level of experience?, have they been doing this for quite some time or are you going to be their first deal.

Second try to see if they have a general understanding of the mortgage market, economics and the flow of money. While no one can predict what interest rates will do tomorrow or next week. Your Pennsylvania mortgage lender better have an understanding of how the mortgage market moves it is beneficial to you.

Find out what their philosophy is on when to lock the rate. Many times you can get a rate locked from application to closing but if there are delays it's nice to know that your interest rate isn't going to go up and cost you thousands of dollars more.

There are so many different loan programs available, be leery of any mortgage lender that just quotes you a rate off the top of their head and tells you this is the best deal going. There's probably more research involved in finding the best mortgage loan for your situation.

If you follow these steps and asked these questions, when you're done you should be able to commit to which mortgage lender will get your business. You should also have a level of confidence that the person you picked is not going to be a disappointment later.

You will have increased your confidence in the financial direction you're heading. Knowing that you are improving your skills with money and financing that will serve you well throughout your life. And of course you know that you've done your homework and your going to get the most competitive terms and extraordinary service.

Picking the right mortgage lender will ensure you get the best loan possible and you will have a house with wall-to-wall carpet and not a house with a back-to-the wall payment.

Whenever you get a Mortgage in Pennsylvania it is regulated by the Pennsylvania Department of banking, consumer services division, you can reach them at one 800 PA-banks or on the Internet at www.banking.state.PA.US.

You do have specific rights for mortgagesin Pennsylvania such as the truth in lending act, which allows borrowers when someone's at least three days after closing to back out, as is called right of rescission.

If you think you've been treated unfairly in a mortgage loan transaction call the 800 number listed above or check them out on the Internet.

Mortgage financing is usually the largest financial transaction in most peoples lives. Be sure you have all the facts about mortgage financing before you sign on the dotted line. There is plenty of information about http://www.pamortgagefinance.com/ Pennsylvania mortgage lenders on the internet. Tim McGovern is the author of this article and refinancing mortgage over 25 years experience as a real estate developer, consultant and broker.

4 Important Questions To Ask When Considering A House Refinance

Are you thinking of a house refinance? You are certainly not alone as millions of Americans have been refinancing their home mortgages for the past few years. But, before you begin searching for a lender to refinance your home here are 4 important questions to answer before making your decision.

1. What mortgage refinancing your current mortgage interest rate?

Obviously, you'll want to know what the current interest rate is that you are paying on your mortgage. If you are unsure of what it is, it may be included on your monthly statement. You can also get in touch with your lender to find out.

2. What will the new house refinance interest rate be and for how long?

With the way that interest rates are fluctuating every month it's important to keep your eye on current trends to lock in the lowest rate possible. On a house refinance it is always a good idea to shorten the loan period if at all possible. A lower interest rate can mean the possibility of you being able to make the same payment amount that you currently are making, for a shorter period of time. This makes great financial sense.

3. What will the total home refinance costs be?

Every bank and lender will have varying costs with any type of loan program. Other fees such as an appraisal fee can often vary as well. By asking and understanding what these fees will be is important in making sure you are getting the best deal. Keep in mind that if you end up paying far too much in house refinancing fees you may not be able to justify refinancing at all.

4. How long will you be living in your home?

While that may seem like an odd question to ask, it's an important one for good reasons. Because of the fees and costs of refinancing, you need to be living in your home for a few years to recoup them. If you move out of your house within a couple of years then it would not make financial sense to refinance.

By knowing the answers to these four questions you can be on your way to refinancing your house and saving a substantial amount of money in most cases. If it seems overwhelming at first don't worry. You can find all the information you need right online. There are numerous websites from various lenders that will help you in calculating your loan and helping you go through the entire house refinance process.

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You can find out more about House Refinance as well as much more information on everything to do with home and mortgage refinancing at http://www.HomeRefinancingA-Z.com