CHICAGO, June 15 (Reuters) – These days, lenders are
incredibly picky when it comes to customers. When I looked into
refinancing a few months ago, a mortgage broker asked for two
years of tax filings, and wanted my accountant to certify them.
Since the savings on a new loan would’ve been minor, I passed.
That’s not the advice you hear most, though, when it comes
to refinancing in today’s rate market. With 30-year loan rates
still under 4 percent, if you know you’re going to stay in your
home for a while – or need to cut payments on other properties
you own – don’t wait.
Unless the U.S. economy goes on life support again, it’s
hard to believe that rates will go any lower – in the June 14
Freddie Mac mortgage survey rates were 3.71 percent for 30-year
loans and 2.98 percent for 15-year notes. Until this week, those
averages showed a quiet six-week streak of record-low rates.
To put those rock-bottom rates in perspective, last year at
this time, 30-year loans averaged 4.5 percent. During the
meltdown year of 2008, they were 6.3 percent. In June of 2002,
they were 6.6 percent; 8.5 percent in 1992; 16.7 percent in
1982; and 7.4 percent in 1972. So there’s little argument that
we’re still experiencing the lowest mortgage rates in two
Yet it’s not always a good time to refinance. Here are some