Home Mortgage Rates are Expected to Rise

Rising Interest Rates Road Sign

There are many people throughout the country - especially investors - who have been taking advantage of the incredibly-low interest rates and still-low home prices and are buying homes in the current real estate market. Not only are the number of distressed properties (including foreclosures) throughout the country decreasing as local real estate markets make progress toward recovery, but home prices are rising and interest rates are expected to climb in the near future as well. Therefore, if you are interested in purchasing a foreclosure in the near future or refinance your existing mortgage, then the time is now.

Buy or Refinance While Interest Rates are Low

As lenders, investors, and consumers gain more confidence in the real estate market, it is finally becoming easier to obtain a home loan in comparison to right after the real estate market crash, which was marked by incredibly-rigid lending standards. As rates remain low, now is a great time to purchase a new home or investment property or refinance your existing mortgage.

  • Buying or Investing: These loosened lending standards and low interest rates provide a great opportunity for individuals looking to buy a new home, especially if you are looking to purchase foreclosures or other discounted properties. The still relatively low home prices and incredible mortgage rates can save you a significant amount of money on your monthly mortgage payments. Therefore, if you have been waiting for the market to pick back up and confidence in the real estate market to rise before you buy, then the time has come. If you wait much longer mortgage rates and home prices will continue to steadily rise and your perfect chance to buy or invest will be in the past.
  • Refinancing: Along the same lines, low interest rates are also great for those looking to refinance their home and save a little money on the overall cost of their property. Some people may choose to refinance and choose a short loan term in an effort to save more money on their overall home cost, while others may desire a lower monthly mortgage payment. Either way, interest rates are incredibly attractive and are perfect for refinancing your home loan. However, take advantage of these mortgage rates while they last since they will more than likely rise in the foreseeable future.

In conclusion, if you are looking to buy a new home or refinance your existing home loan while interest rate are low, then the time is now. A higher interest rate can cost you thousands of dollars in the long run, money that you are essentially throwing away. Take advantage of the current real estate market and interest rates and buy or refinance today - save money now and in the future.

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