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Many Homeowners Should Refinance
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June 19, 2005 LOS ANGELES -- Until two weeks ago, many of us may have been under
the impression that the refi-boom era has come-and-gone. Furthermore, many who
locked interest rates after the
so-called boom ended may have thought they could possibly never be able to lock
an interest rate at the historic low levels seen
between 2002 and mid-2004. The good news is that these homeowners are in luck,
as rates have plummeted back
to 40-year low points recently.
It's true that the all-time low seen for home financing rates
was back in June of 2003, when the 30-year
rate averaged 5.21 percent, but presently interest rates are knocking on the
door of that historical marker. Henceforth, smart home mortgage holders should
weigh the benefits of
refinancing now and not miss the proverbial boat.
The fact is that rates will likely climb above levels we are seeing presently
during the course of the next 6 months, so it doesn't take an accounting expert
to see now is a great time to refinance. In fact, even if your current rate
isn't much higher than 5.500 percent, the advantages could be in abundance when
you do the math, especially if you desire a cash-out refi. There is strong
likelihood that a large number of homeowners who purchased their property just
one year ago will be inclined to refinance at
today's current rates.
One year ago, 30-year fixed interest rates went as lofty as the 6.46 percent
mark. Currently, home loan rates are averaging less than 5.75 percent, even
after the discount points are added. An example of possible benefit would be
that a typical monthly payment on mortgaged amount totaling $200,000 which
previously carried a 6.5 percent rate would be $1,264. If refinanced now at 5.75
percent the payment would be reduced by a significant amount making the final
number around $1,167. - Article by
Benjamin Pengreen for CMR
Financial Original Mortgage News.
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