When shopping for a home mortgage refinance these days it is essential that you understand What Are Today'S Mortgage Refinance Rates. The day of easy credit has long since passed and so have many of the lending terms and conditions that made such borrowing so readily available in the first place. Nowadays, a lot of people have very little or no credit at all, and if they do have the wherewithal to get approved for a mortgage they are going to have to pay extremely high interest rates in order to secure themselves.

 

A few years ago a mortgage was a big deal. If you could qualify for a loan it meant a great piece of property with the potential for fantastic monthly payments. In today's climate that is not quite as easy to come by. What are now commonly referred to as subprime mortgages were initially designed to be a temporary fix for the mortgage market - and that was true, but there was also a dark side to those loans that few people even knew about.

 

Subprime mortgages, of course, got a bad name because of their high rates. Many homeowners were negatively affected when the economy went into recession, and suddenly found their mortgages skyrocketed in price. Those who couldn't afford their mortgage were forced to sell, and were left with homes worth less than the mortgage that they had taken out. Those who still had the mortgages on their property were stuck with them. This was especially true of people who had made large initial payments on their homes but who suddenly found themselves deeply underwater. Today's mortgage market has made those situations irrelevant.

What Are Today's Mortgage Refinance Rates?

 

But that was only the half of the problem. Just because a lender would make it easier for you to obtain a mortgage in the past did not mean that they were any less regulated today. The Federal Housing Administration has kept up on the changes that have been made to the mortgage market and has worked hard to keep mortgage refinance rates as low as possible. In fact, the FHA has even helped to develop guidelines and criteria that help to make sure that the standards for mortgage refinance loans are being followed correctly. If lenders were allowed to take advantage of lax lending standards before, they can do just that under today's circumstances.

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Because of all of this in the past, and the current reality of today's mortgage market, what are now known as "subprime" mortgage refinance rates are at historic lows. If you've been holding onto a home for a while and have been keeping to your budget, you may not have seen these numbers. But if you've been making regular payments and haven't done anything to increase your credit score, you could be seeing very low rates. While it's not going to be easy to get your interest rate dropped - if it drops by even just a couple of points, you'll have to pay out of pocket expenses to raise your credit score - you'll end up saving thousands of dollars in interest charges over the life of your loan.

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There is no question that the FHA is in the midst of a major push to allow more people to receive government assistance. Millions of Americans are in need of help with their mortgages and many of them don't have the income or credit history necessary to qualify for traditional financing. Many of them are being left out in the cold, and in an increasingly precarious financial situation.

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As mentioned above, what are now known as "subprime" mortgage refinance rates are at all time lows. If you have ever seen a mortgage offer that was priced beyond what you could afford, you know how frustrating it can be. However, if you know what you're looking for, you can sometimes still find the right deal.

 

To do this, you need to keep your eyes open and aware of what's happening in the market. Keep an eye on the news and what's expected from your lender. If there's a possibility that they might be lowering your mortgage rate just to keep you as a customer, it may not be a bad idea to take it. However, if you have a clear picture of what you can afford today, you will be better prepared to see what's available in the near future.

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