Low Mortgage Rates -
Are They Only A Dream? Low Home Loans Interest Rates Are Vanishing –
Refinancing
August 1st 2006
|
 |
|
Low Rates? |
|
The short answer is No, but they are starting to vanish before our very
eyes. If you are to take advantage of low mortgage rates your time is
running out. The Federal Reserve is continuing it's policy of raising
rates. This will in turn cause the banks and lenders to raise mortgage
rates.
Are the banks pleased with raising rates? No. Banks are no more pleased
than you and I are, because they actually make more money when rates are
low. More people finance and refinance when rates are low. The increased
volume of business makes up the loss of interest rate.
Because the Federal Reserve has made it clear that it intends to
continue slowly raising rates, the bank's will have to also. This policy
of raising rates insures that we will see higher interest rates for
mortgages in the near future.
Rates are currently as low as 6%, in the grand scheme of things that is
a low mortgage rate. If you are to take advantage of it, you will have
to act soon.
Qualifying for the lowest mortgage rate is another story. To qualify for
a 6% mortgage you will need exceptional credit. You will need full
documentation and asking for a loan that is less than 80% of the homes
value.
This discourages a great many people. But think of it this way, if you
don't qualify for 6% how about 8%. It wasn't but a few years ago that to
qualify For an 8% loan you had to meet the exceptional criteria. In a
short while that will be true again. At that point, you will be looking
at a 10% mortgage. A friend of mine refinanced a couple of years back,
at the time rates of 4 1/2% were available. He was unhappy that he only
qualified for 6%. Looking back he is happy that he did it because he
would not get a 6% offer now.
Too many people
are turning their nose up at today's rates, but we need to realize that
the rates now are still cheap. In 1980 a low mortgage rate 12-13%, by
comparison 6% doesn't look too bad.
More Information
Tim Grimsley
Writer
Books on
Lending
Keywords and misspelling: investmint investing intesters
socks
Berkshire Hathaway hathway birkshire coke gillet gillette gilette Buffet
Bufett
|
