CHESSNOID

You may have perfect credit, a long term stable job, and a high credit score and no credit card or auto loan debt, but that doesn’t mean you will automatically qualify for a refinance on your mortgage. That certainly doesn’t make sense, yet it is true.

The Federal Reserve is loaning money to banks at 0% so rates for consumers are at 3-4% for 15 and 30 year mortgages. However, banks can buy US Treasuries and make money with no risk at all. Amazing, considering that the money they get from the government is essentially money loaned out by taxpayers which are the same people the banks deny the loans to. Banks are looking for reasons to turn down loans and not to approve them.

The bailouts and stimulus packages were simply a fancy Ponzi scheme. How else can you explain literally trillions of dollars spent and an unemployment still hovering between 9-10%. Unofficially, our unemployment is twice that meaning there are about 30 to 40 million unemployed people.  How can the economy be like this after all that money was pumped into our system? We could have bought all of the foreclosures with the amount our government spent!  The financial experts are talking about a double dip recession, but I think we are still living in the Great Recession or the Bush-Obama Depression

Market Watch:

If you’re in the market for a mortgage, you could be in for a very low rate.

According to Freddie Mac’s weekly survey, rates on 15-year fixed-rate mortgages as well as 5- and 1-year adjustable-rate mortgages hit record lows this week. The 30-year fixed-rate mortgage hit its lowest level for 2011.

For homeowners interested in refinancing, the problem is — and has been for awhile — that while mortgage rates are extremely low, both the borrower and the property must qualify. And with many homes losing value in recent years, qualifying for the best rates has become a challenge for homeowners in most parts of the country.

Read more real estate news in this week’s pages, including the latest on mortgage rates and a Home Economics column on why the refinancing window is reopening for a lucky group. Also, read a Realty Q&A about what to look for when you’re walking through a model home, and view a slideshow of college towns that may appeal to investors.

And if you think you might benefit from a refinance, make a couple calls to lenders to see if you qualify. Low rates will only be around for so long.