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Refinance Mortgage Spreads Impacted By Recent Housing Numbers
By admin | November 29, 2009
There is nothing more despicable to a hard working god fearing home loan shopper than high refinance mortgage spread premiums. Historically, the spread premium for home mortgages has stood at about 1.5 percent. So, this 1.5 percent is added to the yield on the 10 year US treasury bond to result in the home loan interest rates that are offered up to the general public.
The housing crash that began in 2007 to present, caused the mortgage spread risk premium to soar off it’s historic average. At one point, early in 2009, that spread was hovering near 3.0 percent, making your potential new refinance mortgage much more expensive that it could have been. Housing numbers significantly affect mortgage spread premiums and just as housing numbers appear to be improving, we have experienced a nice reduction in the premium percentage.
Topics: Business |
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