If your mortgage is more than 3 years old, it's really likely that your mortgage rate is higher than it needs to be. It may be time to refinance. Don't wait for the FED to drop rates as we often hear from fence sitting clients. As you can clearly see from the chart the FED has little if any influence on mortgage rates.
Relative to any point in time since August 2005, mortgage rates are extremely low. If your mortgage is being professionally managed for you, your loan officer has already called you to start the refinance process. If he hasn't called, it may be time to find a new loan officer. But besides low rates, though, there's another major reason to check in with your loan officer.
The Mortgage Fringe List is growing along with the number of mortgage defaults nationwide. More defaults = bigger list and as of January 2008, the list includes:
And, like those that inhabited the list before them, the mortgage products on today's Fringe List are very near to the same fate.
This is terrible news for a lot of people including:
1.Homeowners with adjusting ARMs, especially jumbo loans.
2.Home buyers with a 6-9 month time frame
3.Home sellers in declining markets
4.Homeowners in condominiums
5.Homeowners with "life changes" requiring mortgage planning
Left alone, homeowners will ignore their mortgage. It's the Law of Inertia. Unfortunately, that can have devasting results in a down-turning economy. By the time the homeowner recognizes a need for a new mortgage plan, many will discover the unpleasant truth that mortgage markets no longer serve them.
Mortgage rates are low and it's a terrific reason to check in with your loan officer. While you're on the phone, ask if you're "fringe" and -- if it makes sense -- take steps to protect yourself.