Mortgage experts watch for mortgage rates to drop again

FLINT (WJRT) -- (01/26/09) -- President Obama and his staff spent the weekend working on a new economic stimulus plan that they hope to have pass next month.

On top of that, this week brings optimism that Mid-Michigan's housing market could receive a big boost,  particularly for those looking to refinance.

If you thought home mortgage rates couldn't fall any further,  think again. Some economists expect the Federal Reserve to push rates lower on Wednesday.

"I heard 3.85 (percent). That's huge. I don't know if it's ever been that low," said Amanda Crews, the housing director at Metro Housing in Flint.

Currently, conventional loans are hovering just below five percent. A few months back, they were in the low six percent range. A cut below four percent could save home owners a ton of cash.

"One thousand dollars a year for every point for a $100,000 loan -- two points. That's $200 a month for a $100,000 loan."

Metro Housing of Flint is a non-profit agency. If you're about to refinance, they suggest waiting until Wednesday before locking in your rates.

"It's going to be an impact day, and you're going to see the rates hover, and loan officers will quiver because there are huge amounts of refinance opportunity there. It's going to be a big day," Crews predicted.

If you have bad credit, or owe than your home is actually worth,  refinancing can be tricky, but not impossible.

"Every time there's a strategy. What happens is we don't want to do the strategy, and we want to do it now, but we have to take the steps and get there," Crews advised.

To ease the confusion, Metro Housing is offering free seminars titled "Know Your Loan, Save Your Home."

"We need to know what your rates are. We need to be able to look at your credit, and what the recapture period is. Then we can figure out what products can get you back to a safe place," Crews explained.

If home mortgage rates take a big tumble on Wednesday, there's no way of knowing just how long they'll stay there. Metro Housing's best advice is to get your act together now, before you miss your opportunity and it's too late.

"Knowing your loan. If you don't take action, it will pass you by," Crews said.

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local, marc jacobson

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