Friday, December 12, 2008

Real Estate - Mortgage Rates Drop

Bankrate.com reports that "The benchmark 30-year fixed-rate mortgage fell 12 basis points, to 5.8 percent ... One year ago, the mortgage index was 6.17 percent; four weeks ago, it was 6.39 percent." It is also reported that refinance applications have increased. To read the press release, go here

Remember that as you apply for a refinance of your current mortgage, you will have to qualify for the new loan, and the property will likely have to be appraised. You may want to have your local realtor review the market value comparables with you so that you understand the current market value of your property in preparation for the refinance application. We do know of people who are trying to refinance their loan, only to have a problem because the property did not appraise at the value necessary for the refinance loan.

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