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January 22, 2009 - The next few months are good ones for those who want to capture extremely low mortgage rates. Rates on many of the most popular fixed-rate home financing products are below five percent and are beginning to close the distance on an incredibly affordable 4.5 percent range. Economists predict that mortgage interest may drop as low as 4.37 this year, but rates will likely go back up and hover just below six percent by 2010.

Meanwhile dynamic proposals to help homeowners are being discussed in Washington, including one that would authorize the government to buy down interest rates with money set aside for the Treasury's economic rescue plan. The way that type of program would work is that the government would step in and pay points to lenders - almost the same way that homeowners do when they take out a mortgage and want to pay points for a lower interest rate. Then the lenders would pass along those discounts to their customers free of charge. Under an Obama administration eager to implement fresh ideas to boost the housing markets, that and other significantly proactive strategies could happen soon.

But in the meantime borrowers are already enjoying extremely attractive and affordable rates on a variety of home loans. Within the past 2-3 months, for example, rates on some home loans have fallen 1.5 percentage points or more. That translates into a monthly savings of $180-$190 per month on a typical $200,000 mortgage. Rates on 15-year loans are lower than they have been in more than five years, and the trusty and predictable 30-year fixed rate mortgage has hit a 50-year low. Even adjustable rate loans are seeing decreases. Some ARM mortgages that began with a special low introductory 4.5 percent rate will reset to a new interest rate of only 3.25 percent - much lower than the original "teaser" rate.

For someone planning to sell soon, an ARM may be a bargain. Others who intend to keep loans for the long haul, however, may be better off refinancing out of their ARM, into a fixed-rate loan. Many banks are offering 30-year fixed mortgages at rates that have not been this low since the 1950s, and grabbing one of those deals may be an exceptionally wise investment.

Regardless of whether 2009 is a good year to hold onto a loan, refinance, or take out a new mortgage to buy a home, one thing is for certain. Rates have not been this low in decades, and may not go this low again for decades to come.

To locate mortgage and real estate brokers who specialize in expert service to the GLBT community, visit www.GayRealEstate.com and www.GayMortgageLoans.com. Or call their toll-free phone number, 1-888-420-MOVE (6683).

For more information, visit: http://www.GayRealEstate.com or http://www.GayMortgageLoans.com

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