With mortgage rates hitting record lows, it may be time to think about refinancing.
The rate on a 30-year fixed mortgage with no points hit 5.01 this week, slightly up from 5 percent last week but down from 5.97 percent this time last year, and the 15-year fixed mortgage rate hit 4.46 percent, compared with 4.47 percent last week, according to the latest data released Wednesday from Bankrate.com. These rates are at, or close to, the lowest levels since the company’s tracking began in 1985.
At the same time, the Mortgage Bankers Association said interest rates on the 30-year fixed-rate mortgages it tracks fell for a sixth straight week, remaining below the 5 percent level, “widely viewed as a psychological tipping point” according to this article.
The record lows are thanks to a combination of the Federal Reserve showing no inclination to raise short-term interest rates and investors and foreign central banks maintaining a healthy appetite for debt issued or guaranteed by the United States government, said Greg McBride, Bankrate.com’s senior financial analyst. And they come as many homeowners are finding themselves owing more than their house is worth and are having trouble making mortgage payments.
There is also a limited-time government program that helps people to refinance if they are slightly underwater. The “Home Affordable Refinance Program” is not as widely discussed as the related loan modification program. And it has been criticized by some housing experts for helping financial players profit. Still, it aims to help homeowners who have a mortgage balance equal to or greater than the value of their home refinance and obtain more affordable monthly mortgage payments.
The program is available until June of next year to homeowners who meet certain qualifications, including having loans owned or guaranteed by Fannie Mae or Freddie Mac and having a first mortgage that does not exceed 125 percent of the current market value of the home. (See if you qualify and find out how to apply if you do here).
With the risk that rates may not stay this low for long and that the government program will end, “there is a window of opportunity” for refinancing that will not be available for long, Mr. McBride said. He recommended that those who think they may not qualify for the program to double check what their home is worth to confirm this. Then, even if you don’t ultimately qualify, he suggested considering trying to refinance anyway if you are paying a higher rate on a fixed-rate mortgage or have an adjustable-rate mortgage.
“Today’s record low mortgage rates represent an opportunity for homeowners to refinance at lower fixed rates or to trade out of an adjustable rate mortgage before an inevitable increase in rates and lock in permanent payment affordability,” he said.
Are you considering refinancing in this environment? Why or why not? If so, what kinds of problems and hurdles, if any, have you run into trying to refinance? (Find more information about mortgages here and more information about loan modifications here).
SARAH PALIN’S post-Couric/Fey comeback at last week’s vice presidential debate was a turning point in the campaign. But if she “won,” as her indulgent partisans and press claque would have it, the loser was not Joe Biden. It was her running mate. With a month to go, the 2008 election is now an Obama-Palin race — about “the future,” as Palin kept saying Thursday night — and the only person who doesn’t seem to know it is Mr. Past, poor old John McCain.
To understand the meaning of Palin’s “victory,” it must be seen in the context of two ominous developments that directly preceded it. Just hours before the debate began, the McCain campaign pulled out of Michigan. That state is ground zero for the collapsed Main Street economy and for so-called Reagan Democrats, those white working-class voters who keep being told by the right that Barack Obama is a Muslim who hung with bomb-throwing radicals during his childhood in the late 1960s.
McCain surrendered Michigan despite having outspent his opponent on television advertising and despite Obama’s twin local handicaps, an unpopular Democratic governor and a felonious, now former, black Democratic Detroit mayor. If McCain can’t make it there, can he make it anywhere in the Rust Belt?
Not without an economic message. McCain’s most persistent attempt, his self-righteous crusade against earmarks, collapsed with his poll numbers. Next to a $700 billion bailout package, his incessant promise to eliminate all Washington pork — by comparison, a puny grand total of $16.5 billion in the 2008 federal budget — doesn’t bring home the bacon. Nor can McCain reconcile his I-will-veto-government-waste mantra with his support, however tardy, of the bailout bill. That bill’s $150 billion in fresh pork includes a boondoggle inserted by the Congressman Don Young, an Alaskan Republican no less.
The second bit of predebate news, percolating under the radar, involved the still-unanswered questions about McCain’s health. Back in May, you will recall, the McCain campaign allowed a select group of 20 reporters to spend a mere three hours examining (but not photocopying) 1,173 pages of the candidate’s health records on the Friday of Memorial Day weekend. Conspicuously uninvited was Lawrence Altman, a doctor who covers medicine for The New York Times. Altman instead canvassed melanoma experts to evaluate the sketchy data that did emerge. They found the information too “unclear” to determine McCain’s cancer prognosis.
There was, however, at least one doctor-journalist among those 20 reporters in May, the CNN correspondent Sanjay Gupta. At the time, Gupta told Katie Couric on CBS that the medical records were “pretty comprehensive” and wrote on his CNN blog that he was “pretty convinced there was no ‘smoking gun’ about the senator’s health.” (Physical health, that is; Gupta wrote there was hardly any information on McCain’s mental health.)
That was then. Now McCain is looking increasingly shaky, whether he’s repeating his “Miss Congeniality” joke twice in the same debate or speaking from notecards even when reciting a line for (literally) the 17th time (“The fundamentals of our economy are strong”) or repeatedly confusing proper nouns that begin with S (Sunni, Shia, Sudan, Somalia, Spain). McCain’s “dismaying temperament,” as George Will labeled it, only thickens the concerns. His kamikaze mission into Washington during the bailout crisis seemed crazed. His seething, hostile debate countenance — a replay of Al Gore’s sarcastic sighing in 2000 — didn’t make the deferential Obama look weak (as many Democrats feared) but elevated him into looking like the sole presidential grown-up.
Though CNN and MSNBC wouldn’t run a political ad with doctors questioning McCain’s medical status, Gupta revisited the issue in an interview published last Tuesday by The Huffington Post. While maintaining a pretty upbeat take on the candidate’s health, the doctor-journalist told the reporter Sam Stein that he couldn’t vouch “by any means” for the completeness of the records the campaign showed him four months ago. “The pages weren’t numbered,” Gupta said, “so I had no way of knowing what was missing.” At least in Watergate we knew that the gap on Rose Mary Woods’s tape ran 18 and a half minutes.
It’s against this backdrop that Palin’s public pronouncements, culminating with her debate performance, have been so striking. The standard take has it that she’s either speaking utter ignorant gibberish (as to Couric) or reciting highly polished, campaign-written sound bites that she’s memorized (as at the convention and the debate). But there’s a steady unnerving undertone to Palin’s utterances, a consistent message of hubristic self-confidence and hyper-ambition. She wants to be president, she thinks she can be president, she thinks she will be president. And perhaps soon. She often sounds like someone who sees herself as half-a-heartbeat away from the presidency. Or who is seen that way by her own camp, the hard-right G.O.P. base that never liked McCain anyway and views him as, at best, a White House place holder.
This was first apparent when Palin extolled a “small town” vice president as a hero in her convention speech — and cited not one of the many Republican vice presidents who fit that bill but, bizarrely, Harry Truman, a Democrat who succeeded a president who died in office. A few weeks later came Charlie Gibson’s question about whether she thought she was “experienced enough” and “ready” when McCain invited her to join his ticket. Palin replied that she didn’t “hesitate” and didn’t “even blink” — a response that seemed jarring for its lack of any human modesty, even false modesty.
In the last of her Couric interview installments on Thursday, Palin was asked which vice president had most impressed her, and after paying tribute to Geraldine Ferraro, she chose “George Bush Sr.” Her criterion: she most admires vice presidents “who have gone on to the presidency.” Hours later, at the debate, she offered a discordant contrast to Biden when asked by Gwen Ifill how they would each govern “if the worst happened” and the president died in office. After Biden spoke of somber continuity, Palin was weirdly flip and chipper, eager to say that as a “maverick” she’d go her own way.
But the debate’s most telling passage arrived when Biden welled up in recounting his days as a single father after his first wife and one of his children were killed in a car crash. Palin’s perky response — she immediately started selling McCain as a “consummate maverick” again — was as emotionally disconnected as Michael Dukakis’s notoriously cerebral answer to the hypothetical 1988 debate question about his wife being “raped and murdered.” If, as some feel, Obama is cool, Palin is ice cold. She didn’t even acknowledge Biden’s devastating personal history.
Rewrite -- your article is NOT up to our standard! An editorial written by Republican presidential hopeful McCain has been rejected by the NEW YORK TIMES -- less than a week after the paper published an essay written by Obama.
The paper's decision to refuse McCain's direct rebuttal to Obama's'My Plan for Iraq'has ignited explosive charges of media bias in top Republican circles.
'It would be terrific to have an article from Senator McCain that mirrors Senator Obama's piece,' NYT Op-Ed editor David Shipley explained in an email late Friday to McCain's staff. 'I'm not going to be able to accept this piece as currently written.'
In McCain's submission to the TIMES, he writes of Obama: 'I am dismayed that he never talks about winning the war—only of ending it... if we don't win the war, our enemies will. A triumph for the terrorists would be a disaster for us. That is something I will not allow to happen as president.'
NYT's Shipley advised McCain to try again:'I'd be pleased, though, to look at another draft.'
Here is New York Times Opinion Page Editor David Shipley's full e-mail to the McCain campaign detailing why the paper rejected the Arizona senator's essay.
Dear Mr. Goldfarb,
Thank you for sending me Senator McCain's essay.
I'd be very eager to publish the Senator on the Op-Ed page.
However, I'm not going to be able to accept this piece as currently written.
I'd be pleased, though, to look at another draft.
Let me suggest an approach.
The Obama piece worked for me because it offered new information (it appeared before his speech); while Senator Obama discussed Senator McCain, he also went into detail about his own plans.
It would be terrific to have an article from Senator McCain that mirrors Senator Obama's piece. To that end, the article would have to articulate, in concrete terms, how Senator McCain defines victory in Iraq. It would also have to lay out a clear plan for achieving victory — with troops levels, timetables and measures for compelling the Iraqis to cooperate. And it would need to describe the Senator's Afghanistan strategy, spelling out how it meshes with his Iraq plan.
I am going to be out of the office next week. If you decide to re-work the draft, please be in touch with (Redacted)
Again, thank you for taking the time to send me the Senator's draft. I really hope we can find a way to bring this to a happy resolution.
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