Bank of America home loans have been a very hot topic lately as mortgage interest rates and refinance rates are set to move below 5% in May 2010. ?Today we have seen the 10 year treasury rate yield break below its 200 day moving average which could be a sign that there is more room to drop in the near future.


Before making this assumption we must look back at the last time the 10 year treasury rate yield broke through its 200 day moving average. ?For a few days the 10 year yield stayed below the moving average before finding support in a double bottom type pattern. ?It then made a strong move higher for the entire month of December.

Since 1971 mortgage interest rates and the 10 year treasury rate yield have had a very strong correlation. ?That is likely to continue in 2010 as the Federal Reserve Bank is no longer purchasing mortgage backed securities. ?With this being the case there is a very good chance that we could see Bank of America home loans move to new 2010 lows in the very near future. ?At the present time the lowest level, in 2010, we have seen for 30 year fixed mortgage interest rates is 4.7%. ?With the 10 year yield much lower today expect to see this level tested.

Bank of America and almost all mortgage lenders have had the ability to gain new customers in the current low interest rate environment. ?It comes as no surprise that customers are streaming to banks because they have the opportunity to lock in to low rates which in turn means they will be paying much less on their monthly mortgage payments. ?Some customers of Bank of America and other mortgage lenders have enjoyed savings of over $100 a month on their monthly mortgage payment.

Before assuming that all borrowers will be able to lock in to a low refinance rate it is very important to understand that only the best borrowers will be able to get a Bank of America home loan or mortgage interest rate below 5%. ?If you have a credit score above 740 and a significant amount of equity in your home then it greatly improves your chance to lock in to a mortgage rate at a low level. ?Please understand that not having these requirements will mean higher interest rates for you and your family.

To improve your borrowing power it would be wise to increase your credit score to the best of your ability. ?Take the time and effort to analyze your current financial situation and make sure that all of your bills are getting paid in full and on time. ?By doing this for several months and several years you will eventually see your credit score increase which in turn will lower the interest rate offers you receive on your home loan or any money you desire to borrow.

Bank of America continue to advertise low mortgage interest rates but make sure to contact your lender before making any final decisions. ?By contacting your lender you will get a better idea as to what mortgage interest rate you will qualify for.

Author: Alan Lake