Government Mortgage Refinance Plan – Obama Helps You With Lower Mortgage Rates

The government mortgage refinance plan was created to help you refinance to lower mortgage interest rates. President Obama and his staff have worked very hard to keep interest rates low for an extended period of time. With this being the case you do not want to miss out on this opportunity as there are several mortgage lenders that are advertising the 30 year fixed mortgage rate well below 5%.

For the entire month of January the 30 year fixed mortgage rate has been at or below the 5% level. This comes after a month in which the 30 year fixed rate was as low as 4.49% and as high as 5.35%. No one knows where mortgage interest rates are going to be in the near future but in the long term it looks as if mortgage rates are going higher.

You do not want to be sitting on the sidelines waiting for mortgage rates to drop as they start to move up. Many analysts have predicted that mortgage rates are going to move above 6% in the very near future. A Morgan Stanley chief economist predicts that mortgage rates are likely to go to 7.5% or 8% by the end of 2010. You do not want to wait and watch mortgage rates get this high.

In the current economic environment you are likely to find mortgage rates well below 5% if you have equity in your home and a credit score above 740. If you do not have these two requirements you are going to find it a little more difficult to get a low refinance rate but you can still benefit. If you can save one full percentage point on your mortgage rate then you would save money by going through the refinance process.

Any major financial decision in your life is extremely important. You will need to sit down and analyze your current financial position. If you have a significant amount of equity in your home and a solid amount of money in your savings account then there is no reason that you should not consider refinancing today.