Low interest rates good news for home owners
Good time to buy a home—real estate agentsBy LISA M. HOFFMANN,Staff Writer
IRON MOUNTAIN - For a homeowner with an interest rate of more than 5 percent, officials at several local financial institutions are saying now might be a good time to refinance.
Currently, the lowest rates for borrowers with excellent credit ratings range from 4.375 to 4.5 percent for a 15-year loan. The 30-year rate is between 4.875 and 4.9 percent. But the rates change on a daily basis.
Joyce Coron, mortgage lender for Range Bank in Kingsford, said whether or not now is a good time to refinance depends on a homeowner's individual situation.
"If they can lower their interest rate by at least 1 percent, it is typically worthwhile because there are fees involved," she said.
Coron added homeowners call every day to inquire about refinancing. She has seen situations where people are saving $30,000 to $50,000 if they are paying over 6.5 percent on a 30-year loan. Coron said the fees on a $100,000 loan can vary from $2,000 to $5,000.
With a refinance, typically those fees are added to the new amount.
Rhonda LaLonde, vice president of the First National Bank & Trust Co. of Iron Mountain-Kingsford, said loan rates are not dropping daily but in the last couple of weeks have stayed steady.
As to whether or not refinancing is an option, homeowners should use their best judgment to determine if they will save money.
"It all depends on what their loan amount is - the more you owe, the bigger you're savings will be," LaLonde said.
Debbie Milligan, vice president of lending, for the Iron Mountain-Kingsford Community Federal Credit Union, agreed.
She said whether now is a good time to refinance depends on the homeowner's circumstances and where they are at with their current mortgage.
"It is good to do comparison shopping," she said.
Denise Sauld, vice president of Financial Services for Forward Financial Credit Union, said with mortgage rates falling and a "buyers market" for real estate, it is a good time to buy.
Rates have fallen, but one has to weigh the costs of refinancing along with the possible
extended terms to determine if it is beneficial to do so.
Sauld added there certainly are huge savings to be realized with rate drops.
Real estate brokers stress that now is an excellent time to buy a home.
Sally Blom, owner/broker for Stephens GMAC Real Estate, said anybody thinking about purchasing a home should really go ahead and start looking because "it's an excellent time to buy."
"They should be looking to buy because the interest rate is so great," Blom said. "We have a lot of motivated sellers. It was a slow year. With the interest rate going down so much, it is a perfect time."
Lisa Hanson, owner of Hanson Realty, said also now is a good time to purchase a home.
"Interest rates are low. There is quite a selection to choose from. Sellers are motivated," she said. "Who knows what will happen in the future. Take advantage of it."
Lisa M. Hoffmann's e-mail address is lhoffmann@ironmountaindailynews.com.
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01-09-09 6:22 PM
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TODAYS HEADLINES.... INTREST RATES DOWN. a slow economy is bringing intrest rates down to draw in skirmish buyers. HOMEOWNERS INSUREANCE UP with norway hybrid wolf dogs running around insurance companies are worried about rabies.
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