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 thing to consider is the type of loan. The amount you qualify to borrow can be directly affected by the type of loan you choose as well as your interest rate. A good mortage loan officer can help you determine what is the best type of loan that will help you qualify for the most home you can get, while keeping your payments where you want them to be.
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 sure that the lender is receiving all of the necessary documentation. Get a property appraisal 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 down the road is always an option in the event that interest rates come down.
Here are some other informational reports that you may find useful.
Buyer's Representation at No Cost to You!
A Few Points About Interest Rates
Credit Tips That May Lower Your Interest Rates
Getting Your Finances In Order
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