Interest Rates Are Down!

December 2nd, 2009

Interest rates are down, do you need to refinance? Are you looking to buy a new home?

I have noticed in the past that when rates go down, they do not seem to stay down for very long. It seems they stay down for days, maybe weeks. Right now you can get a 30 year fixed-rate mortgage for somewhere around 4.75%, and you can get a 15 year fixed-rate mortgage for somewhere around 4.25%. The specifics will depend on the loan size, your credit score, the property type, property location, etc.

I would not wait, I would pounce immediately, and talk to a mortgage professional that you think is experienced, will be able to execute, can handle the flood of volume that is currently overwhelming the banking industry, and that is ethical. Although shopping around is certainly important, do not turn it into a sport and make it the focus. Finding the best deal that you ultimately never close is meaningless. Finding a competitive deal that you are confident will close is the most important thing.

It is hard to say where interest rates will go next. This is about as rock bottom as they have ever been, going back a long, long time, probably 40 or 50 years. One would have to think for interest rates to go a lot lower and reach into the 3’s, that we may be headed for The Great Depression, part 2! Or, because of the incredibly massive deficit, will we suffer from a major inflation and see interest rates spike?

Only time will tell, but my theory is to take the bird in the hand and take today’s great interest rates if you need to refinance or are looking to buy.

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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