Mortgage Rates Hit 37 Year Low! That was the headline I came down to this morning.
Marketwatch is reporting that rates average just slightly more than 5% on a 30 year fixed rate mortgage. That is the lowest rate since FreddieMac began its mortgage rate survey back in 1971.
To put that in perspective, 42 years ago when I bought my first house I had the opportunity to assume a mortgage on the property for 5 1/4%. The going market rate was right about 7%. This was long before I entered the real estate business. Not sure what to do, duh, (Hey I was young then - smile) I called the smartest guy I knew, my father. His advice: "Jump on it! You will never see an interest rate that low again in your lifetime." He was right for the most part and I enjoyed great savings over many years.
Now kids, and I mean that collectively, a similar once in lifetime opportunity exists. If you've been sitting on the fence, thinking about buying, now is the time! Home prices have dropped to levels not seen in a decade. If you are not planning a move, by all means contact a mortgage professional to see what refinancing would do to your monthly budget. Remember: Refinancing does not necessarily mean taking cash out. Consider refinancing your balance for just the remaining number of years on your existing loan. It could make a dramatic difference in your monthly payment.
With some economists suggesting that inflation is just around the corner which would eventually lead to higher and higher rates. "Jump on it! You may never see an interest this low again in your lifetime."
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