Getting the lowest interest rate for your mortgage is the best way to ensure you are getting the best refinancing deal possible. When will interest rates be lowest? Here are my mortgage rate predictions for 2010.

Currently, a typical fixed rate mortgage can be gotten for around 5%. This is still much lower than homeowners who bought their home 5 or 10 years ago. In fact, many homeowners pay double that and are close to a 10% interest rate. However, I do not think that these low rates will last forever.

Right now, interest rates are so low because of Government programs designed to help homeowners refinance. Also, since the housing market is in pretty bad shape, interest rates have been reduced to attract interest from buyers. What this means for existing homeowners is that a great chance to get a good refinancing deal exists right now.

Homeowners who have been considering refinancing should take action now. While interest rates are low, they can not, and will not, stay that low forever. In fact, I predict that around April of 2010, mortgage rates will climb to about 6.25%. This is a big increase over the current available rates, even if it is only 1.25%. This small increase will in reality cost homeowners thousands of dollars over the course of their loan.

I think that the rates will rise due to mortgage lenders and banks being in better shape by then. Even though the economy is in tough shape, and the housing market is bad, homes values have not dropped any further than they have. This shows me that the market has "bottomed out" and the only place to go from here is up. Although it may be a slow recovery, there will be a recovery. Once the housing market has some stability, the interest rates will go up. The mortgage lenders and banks will once again put profits first, and the homeowner second. As opposed to now, where the homeowner is most important, and profits are in second place. Since so many homeowners right now are at risk of losing their home, a lender or bank would rather take a little profit and help a homeowner, than take a potential loss and go through a foreclosure.

Basically, homeowners should take advantage of the great time it is and refinance their home. However, I do believe you have a few months before the rate increases go into affect. Many homeowners can easily save a lot of money by using the low interest rates, and new refinancing opportunities available right now. Know though that I think in April of 2010, the interest rates for mortgages will be going up.