Mortgage rates dropped quickly in Orange County earlier this week after the Federal Reserve announced a plan to pump $600 billion into the mortgage market in an effort to stem foreclosures and sliding home prices.
As my colleague Mortgage Insider Mathew Padilla reported, the best rate on a 30-year fixed-rate mortgage up to the old conforming limit of $417,000 fell half a point to 5.25% with a one-point fee, down from 5.75% a day earlier.
Refinancers like to take advantage of a drop in interest rates, though in this downturn, reduced credit scores or dimishing home values could put the kibosh on that.
“If these rates hold, you’ll see these refinance applications really start to take off next week,” Marc Savitt, president of the National Association of Mortgage Brokers, told the Associated Press.
So, what do you think?
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I refinanced years ago at 4% on a 10 year loan. I don’t think it will get better than that.
Who could possibly get a loan right now? Unless you have perfect credit they won’t give you the time of day.
Waiting for less than 5% and no points on a 20 year fixed, otherwise, it’s not worth it for me.
Rates are low, time to refinance. Rate shoppers will get burned.
Call Ditech
I just did. I got a10 year no cost loan at Well Fargo at 6%. When it gets a little lower I’ll do it again.