Home  Top Stories  Sports  Entertainment  Health News  Business  Personal Finance 
Real Estate  Business Finance  Insurance  Consulting 
Tax News  Forum


 

Writers






 


Featured Articles







BUSINESS



 



 

 

 



Home Loan Options and Considerations as Interest Rates Rise

January 9th 2006

Home Loan Options and Considerations as Interest Rates Rise

When to Refinance

There are many options for financing a home.  Many homeowners that originally financed their home are wondering if they should refinance their home before rates go up.  Since their rates are tied to a fluctuated interest rate, it may be a good option.  You may want to talk to a financial advisor before doing so.

According to the forcasts.org website, the prime interest rate is expected to go up this year.  In 2004 the prime interest rate has made a steady climb from a little over 4% to over 7% today.  They expect the rate to climb to 7.49% by June. 

One thing you need to check before you decide to refinance is your current contract.  Is there a pre-payment penalty if you decide to pay off the loan early in order to take out a new fixed rate mortgage? 

 

Those homeowners looking to take out equity should also consider refinancing now as opposed to later. If rates go up home values will likely go down.  Plus you will end up paying a higher interest rate.

Credit Card debt is another consideration.  Is it a good idea to consolidate unsecured debt in secured loan against your property?  If you are unable to make payments on the home loan you may lose your house. 

 

There are two more issues concerning credit cards.  Recently new rules have forced credit card companies to double their minimum payments.  This could be disastrous when combined with higher interest rates and changes in the bankruptcy laws.  If you were making a good income when you took the charge, you may not be able to escape paying the debt.  Again, you should talk to a financial professional about this. 

 
Comment on this Article at our Forum

Submit your own Article

All of our Real Estate / Finance Information

  RSS Feed Real Estate/Finance News

  RSS Feed to our Business News

  RSS Feed to all of our News

Add to Google Add to My AOL
Add to My Yahoo! Subscribe with Pluck RSS reader
Subscribe in NewsGator Online
Add this feed to Your C-Net

By Dan Wilson
Best Syndication Staff Writer

Finance Books

Keywords and misspellings:  lending tree eloans refinance refi lones lone


Google
 
Web BestSyndication.com

About   Contact   site map

Copyright 2005 Best Syndication                                     Last Updated Saturday, July 10, 2010 09:48 PM