Refinancing a Mortgage from an ARM to a Fixed Rate Mortgage
Mortgage rates on 5-year adjustable rate mortgages (ARMs) reached another low this week. Mortgage rates on five-year ARMs were 4.80 percent with an average 0.6 point, down from last week when rates were 4.85 percent.

One-year ARMs averaged 4.77 percent with an average 0.7 point, down from last week when the average rates 4.85 percent.

30-year fixed mortgage rates tied a record low of 4.78 percent with an average 0.7 point, down from 4.80 percent. 15-year fixed mortgage rates remained under 4.50 percent for the third straight week at 4.48 percent with an average 0.7 point.

Record mortgage calculator are helping to put a bottom in the housing recession. Housing prices have increased 0.7 percent in February 2009 compared to prices in January 2009. Year over year prices have still declined 6.5 percent. Read more: home sales

Frank Nothaft, Freddie Mac vice president and chief economist said “The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971.”

Do you have an adjustable rate mortgage (ARM) coming up? Now would be a good time to lock in a 30 year mortgage or 15 year mortgage at these historic low mortgage rates. Adjustable rate mortgages are also low these days but you run the risk of having to refinance again at a later date when rates might not be as low anymore.

30 year fixed conforming mortgage rates are around 5 percent. You can also find Debt Consolidation under 5 percent at certain banks and lending institutions. 15 year mortgage rates can be had for under 4.5 percent, an even better lock if you can afford the extra mortgage principal payments each month.

If you are a homeowner who has good credit, payed your mortgage on time but are not able to refinance to take advantage of today’s lower mortgage rates because the value of your home has decreased? Well you can still refinance into a fixed rate mortgage. The Making Home Affordable Refinance website (government site) will help borrowers whose loans are held by Fannie Mae for Freddie Mac to refinance into a more affordable mortgage.

You can Refinance up to 105% of the value of your home. You mortgage payments must be current on your existing mortgage.