Mortgage rates are something that affects most of us who have an
interest in real estate or owning a home. Mortgage rates at this time
are at a historical low and that means more and more people with less
income can afford a home and mortgage for buying that home. As mortgage
rates rise, more income is needed to service the payment or debt and
that means you can borrow less than if you borrowed at a lower mortgage
There has been a large consolidation of mortgage brokers and lenders
within the last couple of years due to the economy. More and more people
have fallen on hard times with either a job loss or other financial
hardship and this has taken its toll on home ownership and foreclosures
around the country.
We hear every day how home prices have fallen and they are not worth
what people owe on them. Should we be concerned? Well, yes and no. If
you have to move quickly or you do not have the income to service the
debt you borrowed, you should be worried.
If you do not need to move and your income is sufficient to service your
debt service, then you just need to make your payments and hopefully
time will heal some of your pain and wounds. The idea that you can make
money just by purchasing a house is crazy. A house is meant to be lived
in and enjoyed. If you do end up making money, you are lucky and it
means that things worked out for you with the purchase and investment.
With mortgage rates being as low as they are right now we are seeing
that many first time home buyers are purchasing their first home in this
market. Several states and federal government have also created buying
credits that help any first time buyers with receiving money back on
their income tax forms in the means of actual cash refunds. It appears
that these credits along with lower housing prices and lower mortgage
rates are allowing more people to absorb many of the vacant and
distressed homes on the market.
Mortgage Rates are set by the world financial markets and the cost of
borrowing money on both short and long term basis. Lenders that make
home loans and mortgage loans want to be sure that they will get their
money back when they loan you some money to buy that dream home.
The lenders will usually offer either fixed rated mortgage loans or
adjustable rate mortgage loans. Depending on your financial needs and
wants, either of these types of mortgage loans could be good for you.
If you want to find the lowest mortgage rates, then usually an
adjustable mortgage loan with a shorter term will fit your need. If you
know that you will only be in your home a few years before you move or
relocate, then it is important to get mortgage rates that will save you
the most money on the home. If you are going to live in the house for
ever, then you may want to play it safe and borrow on a fixed twenty or
thirty year loan.
Mortgage rates affect us all. That means that everyone in our country is
impacted when rates go too high, or even too low. Right now we are
seeing mortgage rates at very low interest and this is causing problems
with a very weak dollar as we speak.
The government and the fed believes that printing up more money will
help save the consumer, while many other people feel that no printing up
more money and not bailing out the banks and others that were reckless
is a better way to keep our dollar strong. Either way, mortgage rates
affect us all in one way or the other.