Economic Conversation

The government mortgage refinance plan has greatly helped home owners refinance at extremely low mortgage rates.  What is has also done is helped to keep interest rates near historic lows.  For the entire year of 2009, the highest that the 30 year fixed rate mortgage has reached is 5.59%.  That interest rate alone is historically low when looking at past data.  After a few weeks of sideways movement, it looks as if mortgage rates are ready to move lower again.  As of Sunday, August 2nd, mortgage rates are around 5.05%.  This makes us believe that we are going to see another push lower to rates under 5%.

If you have been confused about the government mortgage refinance plan there are many companies out there that can help explain it.  You have probably seen advertisements on the Internet and television for these companies.  Some of their slogans include “Obama urges you to refinance” or “Let the government bail you out.”  These companies have been created to help decipher the information of the mortgage plans and help you get the lowest rate possible.  Most of the ads offer an 800 number for you to contact someone in the know.  While you may not want to give them a lot of personal information, it may be worth it to actually give them a call and ask some generic questions.

Congratulations on taking the first step into better understanding the government mortgage refinance plan.  The next step is to contact someone who has analyzed the information and can explain it to you in plain English.  Remember that these companies have been created to help you rather than hurt you.