Economy Rockford: The Clock is Ticking on Refinancing at Record Low Rates

in Tonight's Economy Rockford report... If you are holding out on jumping into the market or refinance... Experts say you better make the move soon before you get locked out of the market.

23 News Mortgage Expert Terry Bloom says over the past year, t he government has been using stimulus bucks to buy mortgage backed securities.

This has helped keep interest rates artificially low and make home buying more affordable.

But many of us are about to get a rude awakening.

The program ends in the next few months.

Bloom expects interest rates to spike as high as six-percent as a result.

The increase could end up pricing some buyers out of the market if we don't act quickly.

"You figure a 200,000 loan amount ,the difference from five percent to six percent is thousands of dollars over a 30 year period of time. Not only is there an impact on a monthly basis but has a tremendous impact over the life of the loan and the equity situation in the home over time as well, it's a huge difference."

Bloom says a healthy interest rate is in the five to five-and-a-half percent range.

The average homeowner looking for a loan should expect to put 20 percent down. A 30 year fixed rate mortgage in the Rockford area is averaging about five-point-two percent.

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