Will it cost you more money to get a mortgage in 2011?  According to a local mortgage consultant, interest rates should remain relatively stable in the New Year as the housing market looks to recover from a disappointing 2010.

Mike McBride of First American Mortgage in Havertown says home loan interest rates should remain at less than 6 percent for fixed-rate mortgages and at less than 4 percent for adjustable rate mortgages in 2011.

McBride, who’s worked in the mortgage industry for more than 25 years, says Haverford Township is “in a region that has one of the strongest housing sectors in the country, so our (interest) rates will be the most attractive. Although our area suffers the same housing issues as the rest of the country, it is to a much lesser degree.”

Last year, record low interest rates brought about a dramatic increase in homeowner refinancing, but didn’t stimulate home sales as expected. In 2011, McBride expects refinancing “to drop off significantly. Most homeowners already have mortgages in the 5 to 6 percent range, so … it will become less beneficial and less cost effective to refinance.”

McBride says “the government has spent a lot of money” to keep interest rates so low.  “Unfortunately,” he says, “when the money runs out, rates are expected to go up.” Before that happens, he suggests the savvy homebuyer will take advantage.

“Rates have bottomed and the forecast is to gradually move up. Once serious buyers realize this, they will see the opportunity at hand. Smart buyers also understand the impact higher rates have on their mortgage payment as well as their ability to qualify for a mortgage with a lender.”

If buyers seize this opportunity, 2011 could be a happy and healthy new year for township real estate.

First American Mortgage, a mortgage banker licensed by the Pennsylvania Department of Banking, reports rates of 5 percent for 30-year fixed rate mortgages and 3.5 percent for 5/1 adjustable rate mortgages, according to rates reported on Jan. 19.