Colorado mortgage rates at 5.27 percent, which is lower than the national average of 5.34 percent. Lowest mortgage ranges are in the states of Arkansas, Kansas, and South Carolina with 4.88 percent.
http://www.bizjournals.com/denver/stories/2009/06/29/daily61.html
If you are sitting tight on an adjustable rate mortgage when you see fixed rate mortgages move to new historic lows, you need to rethink your strategy and consider refinancing to take advantage of locking in rates.
Moving away from an adjustable rate mortgage will be the best move you have made all year.
With treasury yields increasing, the refinancing boom is not going to happen. Home prices continue to fall, and expected to level off in 2010.
When prices are dropping, few people are willing to spend $1.00 and end up with $0.90 in a few months.
Why stretch out a $1.05 to ten years, when you can refinance to $1.25 and stretch payments out to twenty years? This is what the Home Affordable Refinance Program really looks like if you do the numbers.
$1.05 / 10 = .105 per year
$1.25 / 20 = .0625 per year
Homeowners are basically taking on more debt to finance existing debt. Instead of paying off everything in ten years, they are chained to the paying off the mortgage for a total of twenty years at a lower payment, but really at a hefty increase at present day value (the above example, the borrower took on another nineteen percent debt to put themselves deeper in the hole).
While failed corporations get bailout money, fail home owners get to owe more money.
Why not? When someone starts pointing fingers and with enough rationalization, everything good or bad can be associated back to the government. It is always good to have varying points of view even if you may find it disagreeable.
http://www.peoplespresscollective.org/2009/07/politicians-caused-mortgage-meltdown/
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