CBS 19 - The Eye of East Texas News - Low mortgage rates causing some East Texans to reevaluate home loans

Low mortgage rates causing some East Texans to reevaluate home loans

by Shavonne Herndon

LONGVIEW (KYTX) - Low mortgage rates are causing many to consider refinancing their home loans. CBS 19's Shavonne Herndon tells you why now is a good time for East Texas homeowners to take advantage of these low rates.

For Jim Parker, it hasn't been easy paying mortgage payments.

"Well, it was significant. We were actually considering even the possibility to move to a less expensive house."

But, on Friday, Parker made the decision to refinance his home loan.

"The interest rate was 4.8%, something like that," said Parker.

That's saving Parker close to three hundred dollars a month.

"It...certainly makes it easier to make it month to month."

In an effort by the U.S. Government to revive the housing market, mortgage rates are now at an all time low.

"Why not? First off, free money," said Seth Reeves.

Reeves, who is with Southwest Funding, says even purchasing a home would be wise.

"You've got the tax credit, the move-up buyer tax credit, you've got properties that are available that you can get good deals on," said Reeves.

However, Reeves adds these rates aren't likely to stick around.

"Inflation is going to come back and when it does, rates are going to go up so don't waste time you must move now," said Reeves.

Meanwhile, Parker says the best gift this Christmas is staying put in his home.

"You know everything has improved it also because of the transition,there was a mortgage payment that did need to be paid. There was a gap in a combination of these things so we paid it and that has helped quite a bit," said Parker.

Here are three things to consider as you look to refinance your mortgage:
----How much is your house worth compared to how much you owe?
----Do you have a home equity loan available to you or a line of credit?
----Is your loan worth more than 100%? Meaning - do you owe more than the house is worth?