Little Rock -  

Airdate: May 28th, 2009

The window of opportunity to buy or refinance a home at a very low interest rate hasn't shut...but it does seem to be closing.

Rates are creeping up, but a good rate isn't all you need in order to get a good deal.

Here's Seven-On-Your-Side's Jason Pederson with tonight's "Your Money" report.

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Karla Baker is a mortgage loan officer manager at Telcoe Federal Credit Union.

The most common question she hears lately?

(Karla Baker/Telcoe Federal Credit Union) "We have people call in every day that say 'What is the interest rate?' I can give you as low as 4.375 or 5.375 like it is today. But if they're not asking additional questions and they're just calling lenders and that is all they get then they're not going to have the whole picture."

 

At the start of May the rate was at 4.375 percent. A week ago it was 4.75. Now it is up to 5.375.

But that rate is still a full percentage point less than it was 12 months ago.

But different lenders charge different fees. Baker says that is why you need to compare good faith estimates, not just interest rates. Good faith estimates will include all the costs and fees.

(Baker) "I had one the other day that gave us…their good faith estimate from another institution had $11 thousand dollars in closing costs. Ours was closer to $45 hundred."

Baker says current trends show interest rates rising in the next couple years to levels seen ten years ago.

(Baker) "In 1999 when people were buying houses they were getting seven or eight percent. So 5.375…I would say still would be a good time to refinance or purchase a house."

 

And Baker says anyone with an interest rate over 6.5 percent who plans to stay in their home another five years is a good candidate to refinance.

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