Are you “on the fence about whether now the time to purchase property with a mortgage? Here are a few reasons why you may want to make a decision to go forward.
Despite recent rises in mortgage rates in general, rates are still really low in the grand scheme of real estate, money, and our general economy. In fact, a recent report released shows that homeowners that refinanced their homes in the last part of 2013 will save, as a whole, approximately $21 billion in interest over the next year. Reducing payments, reducing interest rates, and taking advantage of the great mortgage economy right now has worked out extremely well for many people. Most refinances, on average, reduced interest rates by about 1.5%.
Mortgage costs are predicted to go up in spring 2014. If you have a smaller downpayment or not-great credit score, then you may have a tougher time making the requirements for the future loans. Rates have been steadily staying in the mid-4%’s for several months now, and while they will probably creep higher in 2014 in general, there most likely won’t be any drastic rises or falls in the numbers. Right now, before rates go higher in 2015, and before home values become too high, is the perfect time to get off the fence.