You've been hearing it for the past year, interest rates are at all time lows and it is true. At the present we are currently at the lowest levels we have ever seen for interest rates on home loans. Last year and earlier this year even, many thought there was no way that interest rates could get any lower, but they have. If you are a homeowner with a mortgage, now is really the time to consider taking advantage of the lowest rates we will perhaps see in a lifetime and lock in a low fixed rate home loan.
No one knows for sure when interest rates will begin to rise again. In general, negative economic news will trigger investments in to the bond market, which pushes interest rates lower. That is why we hit a new all time low this past Friday after a disappointing U.S. jobs report. Couple this with the Federal Reserve's actions to try and artificially keep interest rates low and we really do have a marketplace that represents the lowest rates we will ever see.
However, what goes down, must come up eventually and while no one can say for certain when this will happen, we do know it will happen at some point. In addition, history tells us that movements up in interest rates are generally much more rapid than move's down in interest rates are. Meaning that when we do hit a tipping point to move interest rates in the other direction, you will probably not have time to react before higher rates appear and stay.
Now, the title of this article is, "ways for homeowners to take advantage of lower interest rates" and we will begin to discuss this today and follow up on this topic in future articles. That is because of the vast array of home loan products that homeowners have, varying degrees of interest rates, varying degrees of home equity or lack of home equity, and not to mention different stages of life that homeowners are in. The bottom line is that for most individuals their mortgage is the biggest debt they have or will ever have. If you are not thinking about how to strategically decide how to manage that debt and take advantage of low interest rates, then you should be.
In upcoming articles we will specifically address the various options for homeowners. If you don't have equity, you can still probably refinance (VA & FHA streamlines and HARP for conventional loans). If you think that you just recently refinanced and it doesn't make sense to do it again, ask about a no cost refinance and see if the numbers make sense. No matter what your situation is, you should contact a reputable mortgage lender and see what options are available for you. Stay tuned for future articles as we address all of these options available for homeowners.
For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com
Comments (0)Subscribe to CommentsComment