For years, it seemed mortgage interest rates were only inches down . Every time we thought that the rates could not go any lower, they proved us wrong
They eventually headed back up -. Not by inches, either. Mortgage rates on 30-year fixed loans have moved up sharply during the last month.
If you are in the market for a home, however, you should not give up. Here's why:
Mortgage rates are still relatively low
Yes, we were spoiled by rate of less than 4% for fixed loans 30 years. In December 2012, mortgages to 30 years has established a record low 3.50%. In July 2013, the rates are suddenly around 4.5% - a higher whole point
This is still very much .. As recently as 08, the rate was 6.32%, and in the 1980s, people were paying more than 10% on mortgage interest. It is amazing that someone could buy a house at all.
This makes the rate of 4.5% today to not look so bad.
A 4.5% on a fixed 30 year loan, you will pay $ 507 per month for every $ 100,000 you borrow. It's only $ 58 more per month than you would have paid if you had locked in a mortgage last December, at the bottom of the market.
The price of the home is more important
Housing prices are still at historically low levels in some markets. Some of the hardest hit by the recession areas, like Florida, these offer excellent deals that international buyers are snatching.
Do not worry so much about the rate of your mortgage as you go through the chance of a lifetime to buy a home.
If we had to choose between a home at a low price and a higher mortgage, and a higher-priced home with a small mortgage, we would like to take home with low prices every day.
you can refinance home if interest rates fall again, or you can sell the house and pay the mortgage. If you overpay on the price of the house, your options are more limited.
Get the best mortgage rate you can
To ensure you get the best mortgage rate that you possibly can, the first thing you should do is check your credit report.
your credit history should show a good record of paying your bills and be responsible with credit. If you see problems, try to resolve them.
Consider getting a short-term loan or a mortgage variable rate.
If you can afford to pay more on your mortgage each month, why not pay half the time? You will get a better mortgage rate on a loan of 15 or 20 years, helping to offset your monthly payments and higher capital.
If you do not expect to live in your home for more than five or seven years, consider getting a mortgage variable rate (ARM). You can get a lower rate on an ARM than a fixed rate loan, although rates may increase at the end of the initial period.
Not getting an ARM unless you are confident can make the higher payments if you still own the house when rates could rise.
do you think mortgage rates will never be in the double digits again?
photo credit: I'm real estate photographer via photopin cc
0 Komentar