Mortgage rates are still very low and will fuel the eventual rebound of the depressed, real estate market.
But everyone would like to know where mortgage interest rates are headed in 2009. Particularly in these erratic times. Everyone knows that forecasts are not one hundred percent reliable, but fairly educated guesses based on the recent economic events, can be made.
Low interest rates are promoted by lenders all over the country. But this fact is only applicable for individuals that have credit scores higher than 700. If you desire getting a five percent interest or below, you not only need a credit score above seven hundred, but also need to make a considerable down payment.
If your credit score is under seven hundred, or you don’t have the financial reserves for a huge down payment, you will have to pay a higher interest rate.
Mortgage interest rates have declined steadily the past few months. The bigger question is when do interest rates finally go up again? Because of the interest rates consistently going down, you may lose a lot of money when you buy right now. But if you delay your decision, and interest rates suddenly go up, you also lose.
Numerous people have applied for mortgages the last couple of months. Many lenders have tried to slow the application flow down by increasing their fees, because they are loaded with mortgage applications. The general trend for mortgage interest is that it’s going down, but it’s not unrealistic to expect a bounce in interest rate pretty soon.
This bounce is not a bad thing. What you need to do is hold off on your decision and buy when interest rates are coming down again. The mortgage market will reach it’s bottom in that period and you can benefit from it. Think about getting a fixed rate mortgage if you can. When mortgage interest rates go up again, you won’t regret your decision.
{ 0 comments… add one now }