From San Diego Union-Tribune...
With mortgage rates again nearing their 50-year low, would-be San Diego County buyers and homeowners have to make a choice:
* Buy or refinance now and lock in the rate;
* Wait and hope rates sink even lower, as some economists are predicting;
* Or watch rates rise to as much as 5.5 percent, as other economists predict, and make up the difference by an expected 5 percent dip in home prices.
The issue arose Thursday, as Freddie Mac’s weekly Primary Mortgage Market Survey showed the average rate for a 30-year, fixed-rate loan at 4.78 percent, down from 4.84 percent last week and the lowest since the 50-year low of 4.71 percent in December. Rates and fees vary by region and lender.
“Strike now,” said Gary McBride, Bankrate’s senior analyst. “If they move quickly against you, it just takes money right out of your pocket.”
San Diego mortgage broker Ed Smith, president of the California Mortgage Brokers Association, said refinancing now makes sense for owners whose loan-to-value (LTV) ratio is no more than 80 percent, for example a loan of no more than $250,000 on a home valued at $312,500.
“I will strongly encourage them to move forward if they could, “ he said. If the LTV is between 80 percent and 125 percent, various government and lender programs offer some refinancing options. If the LTV is greater than 125 percent, “they’re definitely in a pickle,” Smith said.
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