May 17, 2009
Mortgage Rates Climb – More Aid for Homeowners
Refinancing the family homestead is still priority number one for many homeowners this spring.
And for those who are tracking rates daily, you may have noticed that the 30-year fixed mortgage climbed a bit higher this week.
Should I Refinance?
According to Freddie Mac data released this morning, the average rate for a 30-year loan rose to 4.86 percent from 4.84 percent a week earlier. Home mortgage refinance anyone?
The 15-year fixed rate averaged 4.52 percent, up from 4.51 percent.
Bank Rate Monitor has a good analysis on recent rate movements and opportunities for borrowers. And if you’re looking for more tips on sizing up the lender’s offer, Consumer’s Union has a checklist of key points.
Of course, I also weighed in earlier this week on the need for potential borrowers to show patience when working with financial institutions on home loans. That’s partly because many banks are understaffed and dealing with waves of mortgage apps. It’s also because lenders are requiring much more in the way of documentation to prove you are a solid borrower.
Bottom line: Refinancing has become a much more tedious process.
But as some Dollars & Sense readers noted in reaction to my commentary, this is a good thing after the fast-and-loose days of the past couple years when the bank would literally open the vault and hand you the money in exchange for an IOU.
Mortgage applications, by the way, dipped last week to their lowest level in nearly two months.
And in another development this morning, the Obama administration expanded its $50 billion mortgage aid program, with new measures that would help homeowners avoid a foreclosure if they don’t qualify for toher assistance.
The new initiatives, according to the Associated Press, are expected to streamline the process of selling a home that is worth less than the mortgage, or transfer ownership of a home to the lender.
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