A local bank administrator is urging anyone thinking about refinancing their home, to do it now. That's because she says, mortgage interest rates, are currently at an all-low.
Federal Home-Loan Mortgage Corporation, otherwise known as Freddie-Mac has chronicled mortgage interest rates for the past 41 years.
Back in 1979, a 30-year fixed interest rate was around 7.6%. Fast forward to last month, and the rate for the same type of mortgage is nearing half that amount.
"It's a great time to be looking for a home and have the opportunity to have a lower payment."
Tonya Westerfield is Old National Bank's Senior VP and Manager of Mortgage Sales. She says, right now, mortgage interest rates have reached an historic low.
"Average for 30 years is right below three and a half. On a 15-year, yes, below three percent at most institutions right now."
Westerfield is quick to point out those are just the averages. Different banks will offer different rates and she says other factors, such as credit history and loan-to value ratio, will determine the final amount.
"So, that's why you want to be specific and talk to someone. And don't just rule it out, the information you're getting. Call and specifically give your instance to someone. And let them figure what would be best for you," Westerfield said.
Westerfield says the low interest rates are the result of a poor job market. Believing the economy will eventually bounce back, she says you shouldn't wait if you're thinking about refinancing, or buying, a new home.
"I wouldn't wait around. Probably in the next couple days, go ahead and do some checks before you do see some increases in the rates. Because, we all know they're going to go up, just not when."
Since march of this year, Freddie-Mac has recorded a downward trend in mortgage interest rates.
Westerfield says you have the option to wait and see if the interest rates drop even lower next month, but she says that may not be a risk worth taking.
Copyright 2012 WFIE. All rights reserved.
We received a call from a viewer Wednesday who said she nearly fell out of her chair when she saw just how low the rate was on her 15-year loan.
