How many homeowners have you worked with in the

past who seemed overwhelmed by the entire

process? If you're like most mortgage brokers or

real estate agents, then you know quite a few.

There are seemingly countless people who have

bought homes who wish, several years later, that

they had worked a bit harder or perhaps waited a

bit longer to get the better mortgage rate or

terms or points.

Or perhaps there are those homeowners whose

credit wasn't quite where they would have liked

it to be at the time of their application and

were left with a rate that now seems unfair to

them. They signed to paperwork, they're locked

in, but refinancing is always an option and right

now could be the best time to encourage these

homeowners to refinance to a better mortgage.

Interest rates continue to remain at historic

lows

One of the major indicators that right now is the

best time to refinance is that interests rates

are at their lowest levels in history. There are

individuals who are securing thirty-year

mortgages for under five percent. If a homeowner

can move from paying just over seven percent to

around five, that would equal tens of thousands

of dollars by the end of the mortgage term.

At this point in time, no one really knows what

the federal government will do with the interest

rates in the coming year. Many 'experts'

predicted that the rates would have increased by

now and still the Fed is holding them at near

zero percent for lenders. There are millions of

homeowners who would benefit from refinancing

their mortgages now thanks to these low interest

rates.

Credit score has improved

Another major reason that now is a good time for

homeowners to consider refinancing their mortgage

is that their credit score will have likely

increased since they purchased their home. This

certainly isn't for all homeowners, but those who

may have missed payments, been slow with

payments, or made other mistakes when trying to

build their credit history prior to purchasing

their home.

A lower credit score will certainly affect the

mortgage rate they receive and if they have

managed to boost their credit score by twenty,

thirty, fifty, or even one hundred points since

they took out their mortgage, then now, with the

low interest rates, is the perfect time to

refinance their loan.

Banks are hungry for positive business

People aren't buying homes at the moment. There

are a number of reasons for this, but with the

housing crisis of the past few years, that has

left many homes foreclosed. Banks are sitting on

empty lots and dealing with increased competition

for customers. That usually means that since

demand is low, rates will be lower.

A homeowner who is looking for a better mortgage

rate will likely be able to find it with another

financial institution, especially if they have

already proven that, through this economic crisis

and housing mess, they have been paying their

mortgage on time every month. The business end of

the industry is sitting in their favor.

Many people are in a holding pattern

There are many homeowners who are staying put

with their homes and their mortgages. The value

of their home may have dropped since they

purchased, especially if they bought their home

four or five years ago and they are merely

waiting for the value to come back up. They may

use this as a justifying reason why they aren't

willing to refinance right now, but it is

precisely the reason that they should consider

it.

There has really never been a better time to

refinance to a lower rate. If there's room to

make significant savings for the homeowner, then

it may pay to encourage them to at least look

into it.

David