Are you looking for a deal that can save you thousands of dollars? If you have excellent credit, a minimum of 20 percent equity in your home and a low debt ratio you can score the bargain of the century, courtesy of amazingly low mortgage rates.
The Flood of Applications
Because of the increased flow of mortgage applications, lenders have beeninundated with a steadily active and nearly overwhelming flood of those trying to take advantage of the low refinancing rates.
One applicant who started the process early could not reach her mortgage loan officer on the phone and the officer stated that her call load went from about 50-60 daily applications to over 240 nearly overnight.
Good News for the Banking Industry and the Economy
This steady stream of refinancing applications is great news for the both the banking industry. More business is being generated for the banks due to the fees associated with the refinancing process. This revenue is much needed to offset the rising costs of defaults most of the banking industry has been carrying on their books.
Additionally the American economy is benefiting in a couple of ways from the incredible mortgage rates readily available. Consumer behavior makes up for 70 percent of the entire flow of the U.S. economy and until the rates dropped, that number was insuccession.
The current flow and process of mortgage refinancing loans have help provided a bit more backbone where it was most needed. Plus, because of the overwhelming increase in mortgage refinancing applications, more bank staff may be required to handle the heavy work load and will hopefully result in new job creation.
Those interested in jumping on the mortgage refinancing bandwagon should only do so if:
- Your rate will drop by at least one full percentage point to ensure that after the break even point, money will be saved
- The cost for the loan should be recouped in savings within 18-24 months of the refinancing mortgage close date
- They are currently in an ARM loan as locking in the low rate now is probably a once in a lifetime opportunity
- Your credit history and home equity percentage (minimum of 20%( can withstand the new levels of scrutiny all loan applications are being analyzed by
- The current mortgage you have is over 6%
