Wednesday, September 8, 2021 / by Sonya Reiselt
Interest rates on a 30-year fixed mortgage continue to remain at a record low but homeowners should take note that, as the economy continues to recover, these rates will slowly begin to climb once again. Currently, according to Freddie Mac, the fixed rate for a 30-year mortgage is at 2.87%, which increased slightly from 2.78% from previous weeks. While it’s expected that the Federal Reserve won’t raise rates drastically by years end, rates are assumed to rise throughout 2022. Unless you’ve purchased your home within the last year and a half, or you’ve already taken advantage of the rates and refinanced, chances are, chances your mortgage rate is a significant amount higher than the current rate for a 30 or 15-year rate. That being said, there are many ways people can take advantage of the historically low-interest rates that the real estate market is experiencing!
1. Refinance your loan. At this point, just about every homeowner has heard about the record rates throughout the last year but many might not be aware of just how significant refinancing can be! This is especially true if your current loan ranges between 5% and 6%. Even after closing costs or 1% - 1.5%. you could save hundreds on your monthly mortgage payments!
2. Buy a new house. If you’re in the market for a new home, whether it be for the first time or you’re just in need of a change, now is an opportune time to take advantage of purchasing with a record low rate. While home prices themselves might be on the high end, it is almost guaranteed that rates like this won’t come back around anytime soon once they begin to rise again. If you’re a current homeowner, you can also feel comfortable being able to take advantage of record high home sales as well as record low-interest rates!
3. Invest in the second home you’ve been planning to purchase. If you’ve always wanted to pull the trigger on a vacation home, or an investment property, now might be an ideal time for you. The main factor that always seems to hold buyers back from purchasing that illustrious second home is the dreaded second mortgage the comes along with it. That being said, even if you can’t secure the deal you might have been hoping for in a second home, with locking down a low-interest rate, you could still find yourself with lower and ideal payments.
The bottom line? Always consider your options before you make a move that can’t be undone. If you’re unsure where to start when thinking about taking advantage of the record low-interest rates before they’re gone, make sure to do your research and confide in trusted experts. There are many loan options out there and an expert mortgage broker will be able to not only answer your questions but also find you the absolute best rate that you can find. And if you’re in the market for a new home, whether it be your only residence, or for an alternate location, make sure to confide in your realtor to find you the home that you both deserve and can afford, with a record low rate to go along with it. And remember, these rates won’t last forever so don’t pass this once-in-a-lifetime opportunity up!
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