Mortgage refinance rates will be aided by a record 112 billion dollars of debt to be auctioned by the government this week. Treasuries, which move the opposite bond prices, tend to descend during big auction weeks on high demand. The 10 year treasury yield is the leading indicator for 30 year fixed mortgage rates. Fueled by the TALF program, in which the government buys Residential Mortgage Backed Securities, and big treasury debt auctions drawing high demand mortgage refinance rates have dropped to 3 month lows.Current Mortgage Refinance Rates
Mortgage refinance rates are as low as 4.875 percent going into this week, fixed for 30-years at par. Par rates include normal points and fees only. Par rates DO NOT include additional points known as buy down or discount points. To qualify for a mortgage refinance at 4.875 percent fixed for 30 years lenders require up to 3 years of income documentation, proof of liquid assets totaling 6 months mortgage payments, excellent credit, and at least 20 percent equity in the property.
Mortgage Refinance - Less than 20 Percent Equity
Those homeowners looking to take advantage of record low rates who do not have at least 20 percent equity in their home are turning to FHA loans. FHA refinancing allows loan to values of up to 125 percent of the property value. FHA streamline refinance is an option for those currently in FHA loans in which a mortgage refinance is completed in days with little to no documentation required.