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Wednesday, 1 September 2010

Mortgage Rates Lowest On Record!

American Heritage Lending makes a promise to all clients that we will keep them informed of interest rate drops. Well, over the last several months, we’ve been communicating with our clients every couple of weeks that new lows are being set in the bond market – making mortgage interest rates the lowest on record. There is a direct correlation between the bond market, stock market, and mortgage interest rates. It is quite easy to understand. As investors flee risk in the stock market they buy bonds. This makes the price of the bonds go higher and causes the yields to drop. When those yields drop, so do the interest rates on mortgage loans. The current yield on the 10 year Treasury note is roughly 2.68%. While this might not be a great investment return it is good news for homeowners.

With every piece of good news there is sure to be some not so good news. In this case the not so good news is that our economy is still not back on track and many homeowners are still watching as their precious equity slips away. However, this is not the time to ignore the good news.

It really makes me scratch my head when I hear clients say, “we’re going to wait to refinance…the rates are going to go lower.” THIS IS GAMBLING. Please consider that this is the lowest that interest rates have ever been. American Heritage Lending specializes in FHA Streamline Refinances and helps clients with future refinancing needs for no cost. So, if the rates DO go lower, American Heritage Lending will help you take advantage of the rates available in the market and no additional cost – meaning, please take advantage of the rates being offered today, don’t wait!

The headline news on Yahoo! Finance last week was “Mortgage rates hit low of 4.36 percent.” American Heritage Lending has seen rates lower than this for FHA Streamline Refinances. Rates for five year fixed loans are below 4 percent. This is certainly the time to secure financing on your home. If you are current on your loan you should be able to refinance and lower your monthly payment.

In conclusion, ACT NOW! These rates will not last forever. No matter what you might read in the news.