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A FEW POINTS
ABOUT INTEREST RATES!!
Less is more
If you're new
to investing or real estate and don't know the first thing about
interest rates, here's a good tip: the higher the interest rate,
the more expensive it's going to be. High interest rates mean
you will have to pay back more on the money you borrow. Another good
rule of thumb is that affordability increases if you use an
adjustable rate mortgage (it's easier to qualify this way). Of
course, there will be a wide range of prices that you can choose
from, depending on what kind of financing you choose. Not even
the Fed knows for sure The Fed holds a considerable amount of power,
but they can't control everything.
Mortgage
interest rates are affected by many unpredictable political,
economic and social events. So there is no guarantee what direction
interest rates will go, despite the forecasts of the experts.
Therefore, make your financial decision based on where things are
today including your budget, your needs and your future plans.
Locking in
rates assures your lowest interest If you do decide you want to lock
in at a certain interest rate, you will need to complete a loan
application and send it to your lender as soon as possible. This
must be done so that your commitment doesn't run out before your
loan is approved.
Follow
up and be se sure that the lender is receiving all of the necessary
documentation. Get a property appraisal, which usually costs about
$300, through your loan agent as soon as possible. Don't obsess and
miss a good real estate deal Although rising interest rates can
create more problems for home buyers, waiting and hoping for low
rates is not necessarily a smart move. You may end up paying a
higher price. Also, refinancing is always an option in the event
that interest rates come down.
Source: Unknown
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