Americans Are Freeing Up Funds With A Home Equity Loan

Sales of new homes jumped to a record high in July, up 6.5 percent from June, the Commerce Department said on Wednesday. Refinancings last week increased as a percentage of all mortgage applications, up to 43.7 percent from 42.4 percent, the MBA said.

Home owners are looking at ways to free up funds by refinancing or opting for home equity loans. For example, a $200,000 home with a $125,000 mortgage has $75,000 in equity.

Home Refinancing AlternativesNow using a mortgage payment calculation tool compare mortgage payments at current rates with he mortgage rates in the chart. Significant savings? If so, you see the value of opting for home loan refinancing.

Cash Out Refinancing Program.This not only frees up funds per month but also puts immediate cash in hand for other purposes such as investing in stocks and bonds or pursuing a business venture or some other income generating pursuit.

Mortgage Market Snapshot
Daily Mortgage Averages Updated: 8/25/2005
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PRODUCT RATE POINTS APR CHANGE
30 Year Fixed 5.46% 0.52 5.57% 0.000%
15 Year Fixed 5.04% 0.56 5.25% 0.000%
30 Year Fixed Jumbo 5.73% 0.63 5.84% 0.000%
15 Year Fixed Jumbo 5.29% 0.61 5.48% 0.000%
5 Year Balloon 5.36% 0.84 5.94% 0.000%
7 Year Balloon 5.55% 0.61 5.94% 0.000%
1/1 ARM 4.45% 0.64 6.25% 0.030%
3/1 ARM 4.78% 0.63 5.91% 0.010%
5/1 ARM 4.98% 0.59 5.79% -0.030%
1/1 Jumbo ARM 4.20% 0.87 6.28% 0.010%
3/1 Jumbo ARM 4.92% 0.75 6.02% 0.000%
5/1 Jumbo ARM 5.12% 0.66 5.98% 0.000%
FHA 30 Year Fixed 5.34% 0.52 5.45% -0.010%
FHA 1 Yr ARM 4.46% 0.60 6.39% 0.000%
VA 30 Year Fixed 5.43% 0.43 5.53% -0.010%

FHLMC 5.56% 5.59%
Fannie Mae 5.67% 5.71%

A Brief History Of Mortgage Rates

Did you know that lenders have been charging interest on loans for over 34 centuries.? A biblical reference reveals when and to whom interest was to be charged according to the Mosaic Law. Still the question is how much interest was charged? Was there a fluctuation in interest levels? Are ancient interest rates comparible to our day?

A mortgage rates shopping resource reports "the Greeks interest rate was sustained between 10 percent to 12 percent." So there were regular periods of fluctuation although they managed to keep their rates fluctuating to far above the 12.00 percentile. The report reveals that the Romans’ carried rates that fluctuated from 4 percent to 50 percent, depending on where in society men lived." These astonishing reports indicate that rates have been fluctuating from ancient times up to the 21st century. And the interest rates of the ancients at one time or another were comparible to todays rates.

So is there a lesson in all of this? Yes. Rates may rise and rates may fall but interest rates will always be.

Home Refinancing A Good Investment Strategy

With a wide selection of high yeild investment strategies now available it may be hard to believe there may be an investment opportunity sitting in your front yard.

Borrowers have yet another chance to lock in low long term rates as 30-year fixed mortgages are once again below 6.00% or convert out of variable rate loans, especially those loans indexed to the Prime Rate which now stands at 6.00%.

The objective is to lower your rates and reduce mortgage payments in order to free up funds to invest in high yield accounts. Once way to do this is consideringlowering your rates on home financing be opting to refinance your home loan.

Rates on 15-year,fixed-rate mortgages, a popular choice for refinancing a mortgage are still holding steady well below the 6 percent threshold. It's easy to see where the savings comes in if your current rates are 6.50% or higher.