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interest-rates-headlineIf you haven’t noticed, mortgage rates are at a new low. But does that mean our economy is at a new low or is it on the rise?  Probably both, I really don’t know.

It kind of sucks because people have been hearing “record low interest rates” or “lowest rates in 30 years” for a while now but those are only sales terms.. They finally have a new connotation. Rates really are at a new low which explains why mortgage applications have shot up to a record 5 year high.. thats back in 2003. 80% of that rise in applications are Refinances. Rates have dropped because of The Federal Reserves pledge of billions of dollars just one month ago.

For people with REALLY poor credit… example.. you haven’t paid your mortgage/bills in over 3 months. Anything over 600 credit score is kosher for a new interest rate around 5.18% … This is real.. 5.18% is very low. The lowest Freddie mac has recorded since 1971.

But say you have ok credit.. and you have some equity in your house. The 30 year fixed rate is at 5.18%.. cheap money right? You can pick up a 15 year extension on your mortgage, Cash out with a rate of 4.92%..

Even 5 year Adjustable rates are low.. around 5.49%

I would say all of these low rates is going to be the stick of dynamite needed to break up the clogged log fluke and bring home sales back up from the free fall it was in.  It might be able to stir up our economy too with all the homeowners cashing out.

So if your in New Jersey and you are wondering what to do because you’re short on money and you just spent a good portion of your reserves on christmas presents, give us a call. See what we can do for you over at Ford Financial!

MERRY CHRISTMAS, HAPPY HANNUKAH, And A GREAT KWANZA

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