Low mortgages make this ideal time for refis

MONEY-SAVING MOMENT: If you are in a position to do a refinance of a mortgage, the deals are the lowest just about in history.

The Federal Reserve has manipulated interest rates with the effect being that 30 year refis are down in the 3s; 15 year refis are in the upper 2s; and 5/1 ARMs are around 2.5%.

Normally, these kinds of rates would have set off the most booming refi business (and purchase business) ever. Yet it’s been a big yawner for so many people.

Potential homebuyers are too afraid to buy right now because they’re fretting about jobs and the economy. But if you expect to stay where you are for 5-7 years and you are renting right now and you have good employment and your credit is OK, I want you to consider going out and buying a home.

On the refi side of the equation, people are discouraged because of the horror stories they’re heard about how banks mess up paperwork. You know what? It’s true. You might have to submit the same paperwork three, four or five times. Who cares? Do it. These rates are too good to pass up.

If you plan to stay put and your house will appraise out — the latter is a really big “if” — being able to lock in an interest rate in the 3s or lower for the life of your loan is amazing.

Many people do have equity and are eligible but choose to sit it out on the sidelines because of bank incompetence. If that’s the case, check out a credit union or an online lender. Don’t be a prisoner of the incompetent behemoths. There are alternatives.

Editor’s note: This segment originally aired Sep. 30, 2011