Home Mortgage Interest Rates Drop
One of the pieces of good news circulating right now is that a Fed rate cut is likely at the next meeting on Tuesday the 18th. In anticipation of this event, home mortgage interest rates have dropped. This means that it might be a good time to start looking for a home loan, or even to consider starting the process of a refinance with a second mortgage. Reuters reports on home mortgage interest rates:
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.25 percent, down 0.17 percentage point from the previous week, their lowest since the week ended May 18 when they stood at 6.23 percent.
While this is good news for those looking to get a home loan, and even for those who want to refinance to second mortgage may find now a good time. Refinance before the option ARM or interest only loan rate spikes. But there are caveats.
One of the main things to be aware of is that lending standards have tightened as a result of the subprime lending crash. This means that you are going to need better credit in order to get a home loan, especially a second mortgage. And a down payment, in the case of a first home mortgage, is going to be necessary. Some lenders will still accept 5% down, but there are plenty who are starting to think 10%, 15% or even 20% down is looking good.
So, there is an opportunity to be had right now. If you have the credentials for it.
Tags: home mortgage interest rates, mortgage interest rates, home mortgage, refinance second mortgage,
second mortgage, mortgage loan blog, home loan
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