realtytimes.com - In 1993 interest rates on 30 year fixed-rate home mortgages had dropped from just under 9% a year earlier to around 6.75% per cent by the middle of the year. Experts were advising consumers that they should take advantage of these low rates and refinance their existing loans. Millions of Americans did refinance and lower their monthly payments. However millions of other Americans, seemingly believing that rates would continue to fall, failed to act.
Mortgage rates of virtually all types and durations are at, or near, their lowest levels in history. According to online real estate information site Zillow, the 30 year fixed-rate mortgage currently has an interest rate near 3.5%, while the 15 year fixed-rate mortgage has a rate less than 2.5%, each for the most highly qualified borrowers. While the rates are lower than ever, experts are warning in 2012, much like 1993, that the low rates will not last forever.
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