The good news.
This week, the Interest Rate Review from Informa Research Services reported that rates on 30-year fixed mortgages dropped to 4.21%, down from 77 basis points from last year, when it stood at 4.98%. The result is a great opportunity for current homeowners to refinance their homes at lower APRs. If you want to keep track of the rise and fall of current mortgage interest rates, pay a weekly visit to BestCashCow.com for all the latest information.
If you’re interested in doing everything in your power to turn an upside down situation into a right-side-up advantage, now may be the best time ever to strike. Informa suggests that you take the following steps:
-Take a look at the various mortgage loan products available to you and determine which would work best for you. The three most common are 30-year fixed rate mortgages, 15-year fixed rate mortgages, and adjustable rate mortgages (ARM).
-Determine which of those three would yield the least amount of risk to you. For many, the ARM option is seen as a higher risk because even though it comes attached with far lower interest rates, after a designated period this will automatically adjust to whatever the current going rate is. If rates are high, you’ll end up with a much higher interest rate for your mortgage. 30-year and 15-year fixed rate mortgages are far more secure, with the 15-year loan appealing to those who don’t mind paying a higher monthly amount in exchange for paying off their homes in half the time and 30-year fixed loans drawing the interest of those who want to lower their monthly payment.
-Capitalize on current low interest rates. If you’re upside down in your home or owe more than 80% of what its current value appraises for, it’s likely that you won’t qualify for the lowest rates around. But the good news is, as the bottom line drops, so does the top line. In a classic case of “what’s good for the goose is good for the gander,” even if you aren’t able to qualify for rock-bottom home mortgage rates, you still benefit from historic lows. Stay updated on current interest rates by frequently visiting BestCashCow.com.
-Make the best of a lowered monthly payment. By securing a lower fixed mortgage interest rate, you’ll also be paying much less per month. But this doesn’t mean that you should take this as a cue to start spending that extra money on frivolous purchases. This is a perfect opportunity for you to make an extra payment each month towards the principal balance on your home, and can take you a long way toward getting out from under an upside down financial burden.
As always, Informa Research Services emphasizes making smart financial decisions, coupled with keeping abreast of current mortgage rates, as a means of taking charge of your financial health. By utilizing all of the tools at your disposal, you’ll be well on your way to becoming what everyone aspires to be: a debt free homeowner.