Todays Mortgage Rates

Todays Fixed Rate Mortgage
Current mortgage rates are much more attractive than I can ever recall. A qualified borrower may now be able to obtain a 30 year fixed rate mortgage for less than 5%. Todays rate is an incredible 4.87%. It's amazing.

Anyone with any type of adjustable rate mortgage taken years back should be taking a hard look into reducing or solidifying that mortgage payment for the long term. Considering that many of us will now be forced to remain in our current homes for many years to come a low fixed rate mortgage makes sense. Selling a home today is difficult. Market prices are below what most are willing or even able to accept. Homes selling are either foreclosed properties being discounted by lenders or short sale properties with a lenders agreement to accept less than what they are owed on the current mortgage. These sales make todays market and consequently todays market price. Buyers willing to take advantage of todays rates and prices are looking to foreclosed homes first. Unless a private seller is able to compete with these market prices thier home understandably will not sell.

Alternatively a homeowner may consider a loan modification. Many lenders today are willing to reduce the interest and monthly payments on mortgages that they currently hold in order to keep a good borrower in that home. A loan modification makes sense if your mortgage is higher than the market price of your home. In other words, as a result of the decline in home values and your lenders overzealous lending practices in the past, you are upside down in your home mortgage. Loan modification and refinance require similar documentation although they are completely different. For example with a refinance you can shop for a new rate, term and lender. A loan modification must be negotiated and provided by your current lender. In a modification the lender decides what to offer you, if anything and you than have some time to decide if you'll accept the newly presented terms. If you choose to accept, a new payment plan will begin on a predetermined date. Rarely will a lender reduce the principal amount owed on a loan. More likely the rate is lowered below current fixed rates for a period of 3 or 5 years reducing the monthly payment accordingly.

Refinancing until the market mends may be the best next step. A new fixed rate loan at todays historically low rates may reduce your present or future monthly payments considerably. The monthly savings on a $100,000 mortgage at 7% refinanced to 5% is approximately $125 monthly. On a $200,000 mortgage the savings is $257 monthly. That's more than $3000. a year. If you were to invest that same $3000 recieving a nominal 3% annual return will give you approximately $16,400 after 5 years. That makes sense. Lowering monthly payments in order to save money in a very tough economy is not just good, it's a giant step in the right direction.

Call me directly with any questions you have on refinancing, buying or selling a home, loan modification, or current mortgage rates and terms. I'll be glad to help. 561-306-6736.