The federal government?s announcement last week that it would buy up billions in mortgage-backed securities is driving mortgage rates down, which in turn is prompting many Long Island homeowners to refinance.

Heidi Frigano, of Lend America, in Plainview, says the phones are ringing off the hook with people wanting new mortgages or to refinance. Brokers there say calls for mortgages have gone up 15 percent.

Brokers say there are costs involved in refinancing, but that for borrowers who are struggling with payments or have adjustable rates, refinancing may be the way to go now. Still, some say they want to wait until rates go down even further.

The rate for a 30-year fixed mortgage is 5.5 percent. Many Long Islanders are currently paying 6, 7 or 8 percent. Mortgage brokers tell News 12 Long Island rates could fall as low as 4 percent in the next few months.

Experts emphasize the importance of seeking advice on refinancing from more than one person or institution. Don?t rush into anything, they add.

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