Verari Financial and Investment

Feb. 4 (Bloomberg) – Mortgage rates in the U.S. rose for the first time in five weeks, threatening to slow the housing market’s recovery as government incentives near expiration.

The rate for 30-year fixed U.S. home loans rose to 5.01 percent for the week ended today from 4.98 percent, mortgage finance company Freddie Mac said in a statement. The average 15- year rate was 4.40 percent, according to the McLean, Virginia- based company.

Rising rates make it more expensive for consumers to buy homes. Sales of existing homes climbed 5 percent in 2009 after falling for three years. Demand rose as buyers took advantage of an $8,000 government tax incentive and low mortgage rates.

“The spring will probably look really good,” said George Mokrzan, senior economist at Huntington National Bank in Columbus, Ohio. “My concern is more the second half of the year. The tax benefits go away and I think the mortgage rates will probably go up.”

The government’s tax benefit program gives buyers until April 30 to have a signed contract on a home and until July 1 to close on it. Mokrzan forecasts that 30-year mortgage rates will rise to 6 percent by the end of the year.

The Federal Open Market Committee plans to end its $1.25 trillion mortgage-backed securities-buying program at the end of March. The purchases are credited with helping reduce mortgage rates, which fell to a record low of 4.71 percent in December.

Bond purchases from Fannie Mae, Freddie Mac and Ginnie Mae, which buy mortgages from lenders and package them into securities, brought down yields and allowed lenders to reduce mortgage rates while still selling the bonds at a profit.

The Mortgage Bankers Association’s index of mortgage applications rose 21 percent in the week ended Jan. 29, led by a 26 percent increase in therefinancing gauge. The purchase measure rose 10 percent.

When you are applying a mortgage loan, you need to think about the interest rates you need to pay each month. If you miscalculate the interest rate, it will burden your income and it can be worse if you can’t afford to pay the monthly payment. The unpaid payments will lead you to foreclosure of your house. You surely don’t want your house to be taken away. You need to think about budget and save to control your expenses related to the mortgage. To make budget planning and save your house at the same time, you need to think in advance.

There are many choices that you can take to save your house without burdening your budget. The best budget planning is that you refinance your mortgage loan. To refinance your mortgage loan, you need to get another lender that can help you and on the internet, there are many lenders that able to do that. This refinancing has several advantages.

First you can save your house. Second, you can re-negotiate the interest you need to pay with your new lender. Third, you can prolong the payment terms so that you get less monthly burden. Fourth, you probably get some debts cuts. These things will save your money and also your house at the same time.