With home loan rates at historic lows, there has never been a better time to examine your own home loan situation with an honest loan officer

 Fred Solomon from Solomon Financial Mortgage shares great news for homeowners: "Mortgage interest rates have never been this low in history -- let me stress again, in history! With home loan rates at historic lows, there has never been a better time to examine your own home loan situation and plans for your future. Sometimes human nature drives people to try to time the market and attempt to wait for even lower rates before acting versus taking a guarantee and locking in their payment into a 30 year fixed today."

On true zero cost loans the broker pays for title, escrow, appraisal, credit report, all the costs that go into the cost of refinancing your home loan.  Lower rates are always available by paying points and closing costs and a simple loan cost analysis will determine which loan options make more sense for you. 

Take the time to get in touch with an ethical, honest loan officer when considering refinancing or lowering your mortgage rate.  Check their company rating on the Better Business Bureau. Take a look at your situation, and ensure you are saving all the money that you can, and positioned correctly for your future home and financial plans," adds Solomon.  Solomon Financial reviews good faith estimates for free to ensure that you are getting a great deal and not paying unnecessary junk fees, or pre-payment penalties on your refinance.

The Fed slashed the Federal Funds Rate (the rate banks charge each other to lend money overnight) by .75% to the lowest target range in history of 0% to .25%. The Fed also lowered the Discount Rate (the rate at which banks can borrow directly from a Federal Reserve Bank) by .75% down to .50%. The result was home loan rates dropping to the lowest levels that have ever been seen in history. 

In the past, bond pricing and home loan rates have reacted negatively to these types of Fed cuts due to fears that inflation will increase. During this history making week, things were different.  First, the Fed's Policy Statement included their intentions to purchase as much as $600 billion of debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-backed mortgage businesses in a direct effort to help lower home loan rates. Fed cuts typically lead to inflation - the arch enemy of Bonds and home loan rates, but this time the Fed stated that inflation pressures have currently diminished appreciably and it is expected that inflation will moderate further in coming quarters. This comment rings true after seeing the recent Consumer Price Index report (which measures inflation). CPI showed that consumer prices dropped more in November than any other month since record keeping began in 1947.

While the auto industry got some relief as President Bush announced a deal for GM and Chrysler with $13.4 billion worth of government loans  and initially gave stocks a boost, it did little to quiet the volatility in the markets...but home loan rates still closed out the week at record low levels, and improved by about .25% from the previous week and by over 1% in the last 30 days.

For a free mortgage consultation or information, interviews subject of this release, contact:

Fred Solomon is an author of real estate / real estate finance books, home loan advisor, mentor and radio show host of The Solomon Free Money Hour.

(949) 421-3744 or (800) 811-7709