Since the Federal Reserve has made significant cuts on interest rates, this could significantly decrease your Tempe mortgage rate, hence, decrease your monthly payments. Even though interest rates are historically low right now, rates are volatile so there is a possibility that interest rates could increase at any time. This is why many of our preferred lenders recommend that buyers not wait for interest rates to decrease more as the Tempe mortgage rates may already be at the bottom. Those who opt to wait it out to see if Tempe mortgage rates will drop even more before buying or refinancing a home, could potentially lose out on thousands of dollars of interest savings when interest rates begin to increase.

Currently, it is also a great time to lock in mortgage rates and, depending on individual circumstances; it may be a great time to refinance your home. Some variables to consider before refinancing your home are:
(1) How long do you plan on living in your home?
(2) How much lower will your new mortgage rate be?
(3) What will the closing costs be when you refinance?

If you do not plan to stay in your home for very much longer, it may not be a financially sound decision to refinance based on the closing costs needed to refinance. A reputable mortgage consultant can analyze your individual mortgage rate in comparison to refinancing options in order to assist you in determining whether or not it would be beneficial to refinance your home at present.

Please contact us if you would like a referral to some of our preferred mortgage
consultants or you can visit their websites.

• Joann Salatino, Mortgage Consultant

• Christopher Holmes, Certified Mortgage Planner

• Dan Heimann, Mortgage Professional

Posted on Monday, January 5th, 2009 at 1:38 pm and is filed under Questions and Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.