Today’s mortgage rates are at historical lows, with the political intervention after the global financial crisis making today’s mortgage rates some of the lowest in decades. It would be a wise move to take advantage of today’s mortgage rates to lower your home mortgage payment, if at all possible. Today’s mortgage rates fr a 30-year home mortgage are the cheapest they are likely to be for a long time to come. If you bought your home a few years ago, your home mortgage interest rate will be locked in at whatever the prevailing rate was at the time. It is almost certain that today’s mortgage rates are lower than the prevailing rate at the time you took out your home loan. If this is the case, then refinancing at today’s mortgage rates could dramatically reduce your monthly mortgage payment.

Today’s mortgage rates are in the 4% range (like right after 9-11) you’re going to get a better rate than right now when rates are in the mid-6%. This is an example of how the general market conditions affect rates. I could go into how mortgage rates are priced according to the mortgage-backed bond market but that’s too technical for now.

So, in a nutshell, the two major factors that determine rates are the current economic market conditions and the risk of the loan. Notice how mortgage rates go up when we have positive economic news and down when we have negative economic news. This is why working with an experience mortgage person is so critical. If your mortgage person just gives you a rate without doing his/her homework there’s a danger in the loan not going well-especially in today’s market. Inexperience loan officers (like bank loan officers who aren’t licensed) just give you rates-but rarely know things like “is this a good time to lock the loan or should we wait to lock. ” would they even know what economic situations might arise that could raise or lower your rate. An experience mortgage professional will let you know what’s happening in the mortgage market since any sudden increase could cause your payment to go up unrepentantly. Learn more Jumbo Mortgage Rates here!