On Friday, September 9, 2011, I posted a blog about mortgage rates hitting record lows. I have an update to that previous posting.

In my previous post, I reported that the average 30-year fixed mortgage rate fell to a record low of 4.12%, but that rate has fallen yet again. In a KOMO News article written last week by economics writer Derek Kravitz, it was reported that 30-year fixed mortgage rates have fallen to 4.09%. 15-year mortgages have fallen from 3.33% to 3.30%. The lowest these rates have ever been.

With the current trend of the economy, interest rates are looking as though they will continue to plummet as the recession continues. Still, many Americans will never be able to refinance their home, no matter how low these rates end up falling. Unemployment, large debt loads, low credit scores, high down payments, and extra fees associated with refinancing, keep people from taking advantage of these incredibly low rates.

If you do decide to refinance your home, you will most likely have to pay fees associated with refinancing. These fees are known as points, and one point is equal to one percent of the total home loan amount. The average fee rates have held steady at .7 point for 30-year fixed mortgages, and .6 point for most other loans. Once these fees are factored in, the average interest rates for a 30-year fixed mortgage look more like 4.25% instead of the low 4.09%.

The Obama administration is working on a government program to help homeowner’s refinance their mortgages. When people refinance, they get lower interest rates. These lower interest rates help them to save money, thus having more money to spend. Theoretically, if more people are able to refinance, a drop in mortgage rates could help stimulate the economy in the long run.

To answer your question, it is looking as though interest rates will continue to drop. If you’re eligible to refinance now, waiting will allow you to get the lowest interest rate you can. On the other hand, if you’re ineligible to refinance now, waiting may be your only option. As the new government assistance programs are expanded more and more, more people become able to refinance their houses.

Many homeowner’s that have been able to take advantage of these low rates, have already refinanced in the past year. Now that the rates have dropped even more, those people may be considering refinancing yet again, but economists would tell you to hold off. Most homeowner’s pay a few thousand dollars in closing costs and the before mentioned fees, when they refinance. Most experts would tell you to wait until the interest rates fall an additional full percent point to make refinancing sensible.

If you are thinking of refinancing because you need more money, you may feel that you can’t possibly wait. Consider bankruptcy and apply to refinance in a couple of years, as many experts expect rates to remain low for quite a while. Hopefully with less debt to pay off, you will build some equity into your home and stop getting repeated monthly negative credit marks for late or missed bill payments, as bankruptcy helps clear most of your debts. This will help get you the lowest interest rate you can possibly get.

Many experts believe that we may be headed for another recession. Don’t enter a second recession with piles of debts. I can counsel you on your debts. I am sure that I can be of assistance to you, a family member or a friend as we all know someone experiencing trouble these days even if we are not experiencing our own financial troubles. Please do not hesitate to make contact with me. I emphasize courteous and discrete consultations packed with plenty of information. The life impact of meeting with me in person will be unforgettable. You will enjoy a new peace of mind and a fresh hope for the future with a new roadmap for financial success that we develop together. You can email my scheduler through our website for your free 30 minute consultation at www.washingtonbankruptcy.com or e-mail directly at [email protected]. To schedule immediately, we can be reached at 253-383-1001 M-Th 9am-5:45pm and Friday 9am – 12pm.