Posts Tagged mortgage interest rates
Have Mortgage Rates Bottomed Out?
Posted by Top Home Loans in Mortgage Rates on September 3, 2010
Recently mortgage fixed rates have dropped to levels that many would have never thought that we could reach. Mortgage interest rates generally stay a lot higher than where they are currently, but recently they have dropped to levels that are consistently low. This is due to extremely high levels of demand for bonds and bond equivalents.
But is this the market of the future?
Investors love security and they love solid returns on investments. Bonds are providing security, but they are not providing good returns for investors. Bond rates cannot stay low forever, and soon investors will move from bonds to equities. The more money that leaves bonds, the greater the rates will increase.
How long will we have low interest rates?
No one knows how long rates will stay low, but one thing is for sure: if mortgage rates go down, they will eventually go back up again. If you have a high mortgage interest rate, it is always a good idea to get something lower to protect your investment. Securing low rates is what everyone should be doing. If your mortgage rate is above a certain threshold, then it would be a good idea to lower your mortgage interest and get a good rate.
We can help with that.
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When should you Early Renew your Mortgage? The Future of your Mortgage
Posted by Top Home Loans in General Business, Mortgage Advice on July 28, 2010
The goal of renewing your mortgage is to save yourself the most money possible on interest. Renewing your mortgage isn’t terribly difficult; generally, all you need to do is select a rate and a term to proceed with your mortgage application. However, how can you ensure that you are getting the lowest rate?
Jim was up for his mortgage renewal. Jim thought rates were very low at that time, and he wanted to ensure that he was able to get the lowest possible interest rate on his mortgage. He decided to call his bank early, and he decided to look into options available by searching the internet.
After checking the internet, he was able to see that the best rate was quite a bit lower than what his bank was offering. He called his bank back, and they told him that they would be able to beat it if he signed up for a new term immediately.
He was extremely happy with the news that the bank provided him, and he renewed his mortgage with his current lender at the heavily discounted rates.
A few months later, rates went down quite dramatically, and the new mortgage interest rate was quite substantially lower than what Jim had been offered. He called him bank back to see if he could be offered the new rate, but they were unable to modify his mortgage contract.
Jim was looking at paying an extra $5,000 to his bank in mortgage interest. Luckily, he know a mortgage professional who could help him out. His mortgage professional told him that mortgage interest rates do not matter near as much as people make them out to be.
The key is to do the following two rules:
1. Maximize your mortgage lump sum payments.
2. Maximize your mortgage payment increases.
Even though the rate will still be higher, by paying your mortgage down faster, this will help you get a higher ROI.
Jim missed the boat on his mortgage renewal, but Jim knows better than to worry about that.
The best way to get the best of both worlds is with a trained, experienced mortgage professional. They will help you to time the market to try and get the lowest possible interest rate on your mortgage.
Do you think a mortgage renewal is important? How do you renew your mortgage? Leave your response in the comments below.
Save your Mortgage from the Bank. Simply Mortgages can Help!
Mortgage Interest Rates; Slowly on the Rise
Posted by Top Home Loans in Mortgage News, Mortgage Rates on July 6, 2010
Mortgage rates have been moving up in recent months; however, it does not seem like they are going up very quickly. The mortgage market has declined quite substantially in recent weeks, and the reason is not even due to increasing interest rates. The reason everyone is moving away from the market is affordability and house values.
No one wants to buy a house at the peak of the housing market. The best time to purchase a property is when property values drop to their lowest values in years. At this time is when people begin to buy quickly and aggressively. When people begin to sell slowly and aggressively, that is when you can be sure that the housing market is at its peak.
This summer has seen a spike in activity in March and April, and in June and July, it has slowed down quite substantially. Unfortunately, it is expected to decline even more once mortgage rates continue to fall.
The next market decline has to do with mortgage rates. As more and more buyer’s exit the market because of higher mortgage rates, then demand for properties will decrease substantially. Luckily, rates are not declining as quickly as expected.
Originally though, most economists expected that when rates began moving up, they would move fast and hard. Thankfully, that is not what is happening this time in the mortgage market. Due to the lack of activity, mortgage rates have remained fairly stable, with some banks even decreasing their fixed rates. Due to lack of consumer confidence and equity demand, this has caused bond rates to stay consistently low. The lower the bond rates, the lower the mortgage interest rates.
Will the market recover?
Most definitely it will recover. How quickly it will recover is e real question that should be asked because the recover that was expected to be fast may turn into a double dip recession.
If you are looking for a low interest rate, then there is plenty of opportunity; however, if you are looking for a good deal on a house, then you may have to wait quite a bit longer to get these deals.