Refinancing Mortgages in Demand

Dramatic drop in mortgage rates has stirred interest in refinancing. According to Freddie Mac 30 year mortgages rates fell to an average 5.47 percent in the last week, as it was the lowest since March 2004. Rates tumbled due to announcement from Federal Reserve that it was buying $600 million in mortgage-backed securities and debt to help the market. The sudden rate drop led to a 200 percent surge in mortgage refinancing applications. Take advantage of low fixed rates: http://www.ratetake.com/mortgage-quote.html The 30-year fixed-rate average was 5.47% with an average 0.7 point for the week ending Dec. 11, down from 5.53% a week ago. Last year the average was 6.11%.The 30-year average has not been lower since March 25, 2004, when it averaged 5.4%, Freddie Mac said. For some rich equity refinances 4.875 percent interest rates are common. Treasury plans to slash mortgage rates on new loans as low as 4.5 percent to stimulate home sales. How easy is it to refinance now? You need at least 20% equity in your home, and with the most challenged market you may end up needing more than 20 percent. When it comes to credit scores, a credit score of 720 is needed to get lower interest rates. You must fully document your income and assets as well as your debt to income ratio need to be smaller now in a range of 43 percent or lower. Should you wait for government to push rates lower? Full release: http://www.ratetake.com/finance/1211-refinancing-mortgag ...