Wednesday, February 2, 2005

Rates Dip - Money Saved

The Mortgage Loan Search Financial Network reports an increase in mortgage refinancing over the past three business days.

Applicants are seeking to lower monthly payments, reduce current interest rates with a view to saving money over the life of the loan and get cash back .

15-year, fixed-rate mortgages, a popular option for refinancing, dipped. Refinancing made up 46% of all mortgage applications.

Despite a decline in mortgage rates to the lowest level in several months. Fixed 30-year mortgage rates averaged 5.58 percent last week, excluding fees, down 6 basis points from 5.64 percent the previous week.

Consumers are cautioned to watch out for heavy fees and avoid more debt than the budget can handle when opting for cash out refinancing loans. Home foreclosures are on the increase due to borrowers taking on too much cash.

Still ones interest rate and monthly mortgage payments can be a good way to save money for a rainy day.