Rates have dropped. This is a fact. As a matter of fact they are as low as during the refinance boom of a few years ago. Why the question mark in my heading? These rates are great for those not taking cash out with superb credit scores and very low loan amount to value of the home. For example if you take a person that bought a house 6 years ago with a first mortgage then this person 2 years ago took out a second mortgage for home improvements and they have a 680 credit score at 80% Loan To Value Ratio -- this clients refinance is considered a Cash Out refinance and the higher Loan To Value will mean that the broker or lender is being charged more via Fannie Mae and Freddie Mac's Rate Adjustments. For the client this means that rates may not be as great as you think.
You need to deal with a professional that will be up front with you every step of the way and point out preferred financing solutions. The person above may be better off subordinating the second mortgage and simply doing a Rate and Term refinance OR even consider an FHA mortgage. The FHA mortgage will have Mortgage Insurance but the lower rate may compensate for this additional monthly fee -- furthermore the Mortgage Insurance on an FHA loan will go away after 5 years.
Today's market demands experience to give you the best advice possible. If you are interested in discussing your opportunities contact us via our website at: http://www.new-hampshire-home-mortgage.com
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