Posted by admin | Posted in Real Estate | Posted on 31-12-2011
Tags: current 15 year mortgage rates nj, current mortgage interest rates in nj, current mortgage rates nj, current mortgage rates nj on fha, wells fargo current mortgage rates nj
What the Current Low Mortgage Rates Can Mean to You
Mortgage rates fluctuate from day to day and hour to hour. The single thing you can be sure of is that eventually the existing low rates will begin to climb again. As recently as the 1980s, a buyer was lucky to find a mortgage loan as low as 10%. Most were considerably higher. It is not beyond the stretch of our imagination to think about the fact that that could well happen again if our economy starts to boom . Although home sales remain in a slump because of the fact that we have seen way too many foreclosures but not enough people with the financial security to buy , if you are in a position to purchase a new home now, you’ll be able to take advantage of a win-win situation.
As you’ve probably heard, with the mounting volume of foreclosures, property values have dropped dramatically. A property that sold for $250,000 in the housing boom might be purchased in certain areas now for half that value. You might have never considered having a house costing one fourth of a million dollars, but now may be your opportunity . By purchasing a house that should eventually be worth twice as much as you purchased it for and ultizing the cheaper interest rates , you are in position to both make and save big money. The time is right for qualified buyers.
Home mortgages are not as easy to get now , because finance companies are sticking to stricter lending policies. During the previous decades, they became complacent and loaned money to people who really didn’t have the funds to pay it back. They chose concepts like variable rates which eventually would change into high-interest fixed rates or balloon payments. Buyers were convinced that when these changes took place , their earnings would rise enough to maintain the installments . Unfortunately, this optimism was misplaced. Thousands of folks that experienced higher mortgage payments were also up against unemployment and under employment, and the money to pay the bigger payments just wasn’t there.
Lenders don’t want individuals to default on houses. They’re in the business to generate money from the interest you pay, not to sell repossessed homes. Therefore, after learning the hard way as to what hard times could do to their bottom lines, they tightened up their guidelines. Still, if you’re able to meet them, you are in position to receive the best deal of your life.