It may be a good time to buy a home or refinance because based on a forecast of the Ten Year Treasury Bond Rate, there may be a corresponding rise in mortgage rates coming in the second half of 2010.

Forecasts from the Mortgage Bankers Association (mbaa.org) shows economic data from the present date and data forecasted through 2010.

One of the items listed in the report is the Ten Year Treasury Bond Rate, which has been commonly used as a barometer of mortgage interest rates.

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Weighing the benefits of refinancing your mortgage? Here are 5 ways to save money by refinancing your existing home loan:

1. Save with a Payment Reduction
Instead of looking only at the mortgage rate, compare the savings between your existing payment and the refinance payment. Compare principle and interest payments on a loan amount that includes closing costs, but not taxes, insurance, or cash out, then decide if the savings is worth the effort to refinance.

2. Save by Consolidating Your Debt
Most credit cards charge high interest, which is compounded daily. If you have a substantial balance on credit cards, or other debt, you could save with an equity refinance. Consolidating debts with a low rate mortgage could reduce your payments, and convert debts into a tax deductible, simple interest loan.

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We’ll have a look at what benefits there are to a fixed rate mortgage for you.
We’ll then look at using a mortgage overpayment calculator.
Security comes with the fixed rate mortgage, whereas huge savings can come with the overpayment calculator.

There are a few different types of mortgage, the fixed rate mortgage being only one of them.
You get a fixed interest period for several years.
Locked in interest rates mean locked in monthly payments.

Are there any benefits to a fixed rate mortgage?
Your payment is fixed because your particular interest rate is fixed.
It’s a lot easier to plan financially knowing your payment will be the same.

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