Mortgage Rates Affected By United States Credit Rating

News broke that United States would lose it’s AAA credit rating in the world economy, and CNN reaffirmed that this would at least for the short term, keep mortgage rates from spiking upward. 

Stocks, Bonds, Mortgage Interest Rates for home buyers or prospective refinance borrowers will all feel the affects.  As you may know, stocks are more risky than bonds, so when there is risk “in the air” for investors, it is common to see the stock markets take a hit.  Since bonds are the more safe best, bonds will benefit from this.  The rule of thumb is, when stocks are “tanking” or doing bad, and bonds are doing well, interest rates will drop.  That being said, it is a very discouraging piece of news for United States investors to find out that our country is losing it’s credit rank. 

As a result of the drop in credit rankings by S&P, rates plummeted again today. 

How can you benefit the most from this recent rate drop?  First, you need to not put this off, because upon a rate drop like this, history proves that there is always a significant rise in rate w/in a couple days of a drop.  You need to have these items together, and call your mortgage banker…hopefully you have viewed my Testimonial page and feel comfortable asking me directly for help and I can refinance you.  Get together these detail and give me a call:

1. current unpaid loan amount on your home…if you have two liens, be sure and give those details
2. current monthly payment breakdown…if you escrow, how much is your taxes and insurance, and principle and interest breakdown
3. how much do you think your home is worth
4. what kind of loan are you currently in
5. how long you plan to be in the home

Call me and lets find out what kind of refinance is best for you and your family.  We beat the major bank  every day on rates and fees, and our service and turn time to close loans is always faster, so DO NOT assume it’s easier with your current lender!