2011 Mortgage Interest Rates Hit Historic Lows – what now?

Mortgage Interest Rates Hit Historic Lows for 2011:

I am going to spare you with all the details why mortgage interest rates hit historic lows for this year.  By now most of us are already numb to the fact that mortgage rates have been historically very low for a while and we are getting bombarded with all kinds of  advertisements reminding us that rates are low. The most annoying one in my book are automated phone calls I receive at dinner time promising me that if don’t press “1″ now then the Federal Reserve will blow up  and my chance lowering my rate is gone forever.

We all get it: Mortgage Rates are very very low! And if you don’t believe me, check out the freshly updated Historical Mortgage Rate Charts over at Jay Thompson’s blog aka The Phoenix Real Estate Guy.

Regardless if you a first time home buyer going through the process qualifying a mortgage or a veteran home owner considering refinancing an existing home loan – Dont listen to the hype about low rates! One media outlet contemplates whether the American Dream is over or not, another writes that it is time to buy again.

For most home owners who think about refinancing the first thing to consider is whether there is enough equity or value present in the real estate owned. In this declining real estate market most consumers would be just happy to do a rate and term refinance. Lowering the interest and changing the term of the loan can tremendously impact the cash-flow situation  and positively impact the overall financial picture. But be careful, just a super lower rate may or may not be the way to at all because you have to put closing costs of the new loan and how long you plan to stay in your home into the equation. For those of you who have been in your home for a long time, perhaps a cash-out refinance may be doable to pay some other higher interest debts.

It just  really depends on the unique situation of each individual.

For those of you who are thinking of buying a home my biggest advice to you is not to put the buggy in-front of the horse. Nowadays a 720 Fico score doesn’t necessarily mean that you automatically qualify for a home loan and having no credit at all doesn’t necessarily mean that you automatically will be turned down.

So what is one supposed to do with stricter mortgage guidelines and interest rates going lower and lower.

Jeff Belonger who writes on MortgageMythBusters.com hits the proverbial Nail on the head:

buying a home should not be a split second thought, that you get up and do it now. As a buyer, if you know you don’t have the best credit now, get with a true professional to help you get to that point

Remain calm but stay enthusiastic, don’t listen to the media hype and seek advice from trusted professionals

And now it is time for a little Friday-Humor:

I am not a rapper, but if you have any questions regarding how to go about getting pre-qualified or if you are thinking about refinancing you home I am just one click away.

Your  MyCityLender