Is it me or are we inundated with news about how bad our economy is and how things are getting worse. Isn’t it time for us to get some good news?
You are in luck, CA Mortgage interest rates are at their lowest levels in several years.
The New York Times stated that mortgage refinance applications consisted 69% of all mortgage applications during the first week of December 2008.
Rumor mill was open and the whispers said that interest rates were going to get lower. The news of government intervention to buy mortgage backed securities, or the bonds that are sold on the open market to support mortgages. It is said that the government will purchase these bonds creating liquidity and driving rates down to the 4.5% level.
Low interest rates in CA play just one roll in this wave of CA refinances as you can see the advantages of a lower payment or debt consolidation. There is a silent majority of homeowners who actually have equity and can qualify with the tougher lending guidelines even in this troubled real estate market.
If CA interest rates slide to the 4.5% range you can expect many more people to take advantage of these low rates to combine their debt lowering their household expenses and in turn stimulating the economy.
About 12 million homeowners or 15% of US households, who can’t qualify for these new rates but those who can, should jump at the opportunity. This should help the economy by freeing up some additional household cash to use in other places.
Jumbo loan amounts will find it more difficult to take advantage of these lower interest rates in CA. Conforming loan amounts for any given area will be strictly enforced in this most recent refinance boom so pay close attention to those loan amounts when attempting to qualify.
If your loan balance exceeds that of your local conforming limits then you need have options but the extremely low interest rates may pass you by but there may be lower rates than you currently have now.
http://www.nytimes.com/2008/12/04/business/04refi.html?_r=1&ref=yourmoney
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