The Federal Housing Finance Agency’s index showed a decrease in average contract interest rates for home loans in Denver and other areas all over the country for November. Compared to the national data for October, the November rate marked a 0.10% decrease on the composite of all mortgage loans.
As posted in an official news release by the agency on their website:
According to the Federal Housing Finance Agency (FHFA), the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.21 percent for loans closed in late November. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 4.22 percent, down 10 basis points from 4.32 in October.
There are several factors that affect interest rates, including demand from consumers, the Federal Reserve policy, and inflation. As a result, while the November decrease may not exactly continue on to the next month and throughout 2014, home seekers can still keep a tab on their loan’s interest rate through several smart financing options.
One of the best of these is refinancing. In this process, home owners trade an original loan for another that comes with terms and conditions that are more favorable to them. Among its benefits is the option to switch from a variable to a fixed mortgage, which locks in the interest rate over the loan’s lifetime. Home owners can also reduce their loan’s time period from 30 years to 15 years, which can help them save on costs, in the long run.
Families interested in refinancing their mortgage loans have several trusted companies such as The Home Loan Arranger to help them with their application process. Such providers also conduct comprehensive evaluations of clients’ situations, so home owners are assured of receiving assistance that best befits their needs and requirements. These companies can also negotiate for the approval of ideal rates to give better value to their clients.
On January 30, 2014, the FHFA will release their national December index. Those who wish to manage their home loan in Denver and in other areas will, thus, do well to make sure that even if the resulting data from the agency’s survey is not encouraging, they can still satisfactorily deal with their mortgage through the help of The Home Loan Arranger and other such companies.
(Article Excerpt and Image from FHFA Index Shows Mortgage Interest Rates Decrease in November, www.FHFA.gov, December 24, 2013)