East Texas Recession Survival Guide: Taking advantage of low mortgage rates

By Layron Livingston - bio | email
Posted by Ellen Krafve - email

TYLER, TX (KLTV) - Just how low will mortgage rates go?

"We did see rates into the high fours yesterday (Wednesday)," said Margie Fisher, with Prime-Lending. "We have a pretty good pipeline of applicants who are already in the door. Those people are ready to lock if they want to.

She said homeowners who are current in their payments, with good credit scores, should consider refinancing. The move could save thousands.

"You could go from a 6.5 rate, down to a 5.5 or 4.5," explained Fisher. "It frees up more money, to pay those other bills, reduce other debt."

Fisher said there are even loan modification programs for homeowners behind, or upside down in payments, folks who have lost their jobs.

"On those types of loans, the government is either lowering your interest rate in the form of a subsidy, or they might extend your loan, from a 30, up to a 40 year loan," said Fisher.

So, what do record lows mean for a struggling real estate market?

"Have we hit a bottom," asked Fisher. "I don't know."

Real estate broker, Jason Wright said that fortunately, here in East Texas, things aren't as bad as the rest of the country. But...

"As long as we keep interest rates low, which the fed has done [then] yes, absolutely," she said.

Take advantage of the rates and act quickly.

"You're not going to have another opportunity like this for a while," she said. "I can't stress it enough, the people that procrastinate will be the losers in that."

No one knows where the bottom is, but one thing's for certain, record lows are here at least today.

Experts we spoke to stress these record low interest rates aren't a guarantee for every homeowner, or refinancing applicant. They say it's still a credit score driven market. The value and how long you've lived in your home are also important factors.