The Fed's recent decision to leave interest rates alone may prompt consumers waiting for a drop in interest rates to obtain a mortgage or refinance a current mortgage.

The Fed's recent decision to leave interest rates alone may prompt consumers waiting for a drop in interest rates to obtain a mortgage or refinance a current mortgage.

"Lower interest rates increase consumer buying power," says JR Diaz, Vice President of Statewide Bancorp, Inc. "The Fed's decision to leave alone interest rates is prompting more consumers to refinance a current mortgage - - or purchase a home. In fact, we have experienced a surge in inbound traffic within the last month."

Statewide Bancorp, Inc. is driven to create a loan process that is simple and convenient. Potential borrowers can log onto the Web site or call toll-free and apply for a loan anytime. Agents are available via telephone or on the Web site. Statewide Bancorp offers competitive rates and no up front fees.

A drop in rates boosts affordability
As interest rates drop, home affordability rises. First time homebuyers and move-up buyers can see their home affordability increase by thousands with a slight downward shift in interest rates. Using a 30-year fixed rate loan program as an example, a buyer who would qualify for $100,000 at 6.5% would qualify at $110,000 at 5.5%.

When and why to refinance
Lower rates also spark interest in refinancing and generally bring to mind the old rule-of-thumb that refinancing makes sense only when consumers can save 2% or more on their current rate.

Today's homeowners refinance for a variety of reasons and don't always hold out for the 2% difference. This holds especially true for homeowners with adjustable rate mortgages who may want to switch to a more stable fixed rate, or those who wish to tap into some of the equity in their home.

Refinancing may also shorten mortgage term
Many homeowners may also want to refinance to shorten a mortgage term. In some cases, with a lower interest rate, the mortgage term length can be reduced for about the same payment the homeowner is presently making. Even saving 1% on a rate can make sense, if the homeowner plans to stay in the home for more than a few years. In many cases, the closing costs resulting from refinancing a loan to 7% from 8% can be recovered in less than two years.

Learn more about home financing, refinancing
To learn more about your borrowing power during the current low rate environment, for purchase or refinance, call Statewide Bancorp, Inc at 1.800.737.0104.

Statewide Bancorp is one of the country's fastest and most innovative direct discount mortgage lenders. Statewide Bancorp has developed a process that enables the company to work efficiently with minimum overhead. The streamlined approach enables the company to offer competitive rates and fees.