Ed's Blog

Refinances are on the rise! In fact, some accounts have shown that refinance applications have surged 50% in the past week. But unlike earlier in the millennium, when refinances surged due to loans with teaser rates (Adjustable Rate Mortgages, aka ARMS), and Option Arms, this time the refinance craze is due to phenomenally low rates on 30 Year Fixed Mortgages.

30 Year Fixed rate loans are at their lowest levels in 40 years, currently in the low 5% range (sometimes even in the high 4% range). This can equate to huge savings (tens of thousands of dollars) over the life of a loan, not to mention substantial monthly savings for homeowners with equity in their home.

If you have a higher rate mortgage loan, it may be time to act. And certainly if you have an Adjustable Rate Mortgage, please give us a call. There is no way of predicting how long rates will remain this low, so contact us now at 415-406-2330 to see if you qualify for a money saving refinance you can begin enjoying in the New Year.

Happy New Year!

For the 10^th consecutive week, interest rates on 30 year fixed rate loans have set a new record low. This week, rates dropped to an average 5.01%, which is the lowest average recorded since Freddie Mac started tracking rates in 1971.

I have to admit, this has got me thinking…just how low can they go? And more importantly how long can they stay this low? Well, many economists are predicting rates to remain low for at least several months, due to the FED’s buying of mortgage backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. However, given the volatility of the market and overall economic climate, I’m leery of betting on that.

My guess is that rates will sooner rather than later, stop declining. How long they’ll stay at these historic lows though, is anyone’s guess. All the same, with interest rates like these, and home prices still falling, it’s a fantastic time to be a first time home buyer, an investor. Likewise, if you own your home, it’s a phenomenal time to refinance into a fixed rate loan –either 15 year or 30 year- as you may stand to save yourself a fortune in interest over time.

Give us a call at 415-406-2330 or send me an email at ed@smithcraine.com  to make the best use of your money today!