July Mortgage Rates Spur Refinance Deals

Mortgage brokers just getting back from summer vacations might feel like they never left the amusement park. Roller coaster mortgage rates are back, with July rates returning to the historic lows of mid-May. While some experts predicted that rates would continue the upward trajectory they started in June, banks found themselves looking for home loan business once again. When lenders need to ring the register, rates come down.

While today's lowest mortgage rates still don't compare to some of the unbelievable deals we saw earlier in the spring, prospective homeowners who used the first half of 2009 to save up bigger down payments can still find some outstanding mortgage quotes. Analysts at Freddie Mac, who compile weekly mortgage rate averages, found that customers willing to pay about three quarters of a point extra at the closing table could buy their interest rates down to just below 5% on a thirty-year fixed rate loan. Borrowers willing to cut their terms to fifteen years have found mortgage quotes in July of 4.63% or lower.

Under 5% Mortgage Rates Lure Refinance Customers
Likewise, homeowners who took advantage of some low mortgage rates in the past decade may finally see enough of a drop in interest for a refinance to save some money. About half of the mortgage applications monitored in Freddie Mac's most recent survey were for refinance deals, emphasizing the impact that low mortgage rates can have on the market. Most personal finance experts suggest refinancing only if you can lower your interest rate by at least a full point, something that market watchers haven't consistently seen in 2009.

Remember that a thirty-year fixed rate mortgage cost about a full percentage point more this time last year. With the added benefit of new tax incentives, FHA programs, and low housing prices, would-be homeowners in some parts of the country can find mortgage quotes that compare favorably with monthly rent payments. Remember to shop rates online before asking for mortgage quotes from local lenders. This way, you've got the ability to find the best deals from the most highly motivated underwriters licensed to operate in your state.

About the Author:
Author Joe Taylor Jr. researched America's biggest mortgage lenders hands-on, by taking a job inside the home loan industry. As a corporate trainer, Joe developed front line service strategies for some of the country's most prominent banks. He taught lending consultants how to explain the complex home loan process, while learning the secrets of finding the best refinancing deals from experienced underwriters. Today, Joe puts the current mortgage market into context by separating facts from hype in his columns and feature articles on ShopRate.com.