Low Mortgage Rate Era Is Over. What To Do Now?

Low Mortgage Rate Era Is Over. What To Do Now?. The Power Of A Shorter Mortgage Rate Lock - Today's Mortgage & Real Estate News - Growella

Low Mortgage Rate Era Is Over. What To Do Now? video duration 17 Minute(s) 9 Second(s), published by Heritage Wealth Planning on 21 05 2018 - 20:02:52.

The era of low mortgage rates is over
Is there anything that you can do to protect yourself? Well, before you act please make sure you understand what you are There was a 5.5 percent decrease in home sales last month in the Valley at the same time mortgage rates are on the rise.

It's July 11, 2018 and Prime rate has just gone up again
but believe me, locking into a fixed rate mortgage is riskier than you think https://www.dollar.bank/mortgages/ Did you know that mortgage rates can change often? Sometimes twice a day
So it's best to protect your rate while you're in The National Association of REALTORS® reports another big drop in U.S
home inventory
an update on today's mortgage rates for conventional, FHA, VA, .

The era of low mortgage rates is over. Is there anything that you can do to protect yourself?

Well, before you act please make sure you understand what you are trying to accomplish.

Remember, just because rates are going up doesn't mean you MUST lock in your mortgage if you are in an adjustable.

Let's say you have a 2% adjustable rate mortgage and it's a 5/1 ARM. That means after five years the rate can increase by 1% a year until it caps out at your maximum. So the most your rate could increase in year six is to 3%.

3% is still significantly lower than the 4.61% 30 yr fixed that are out there now. Why would you give up that rate to lock in a higher rate?

Even say in the following year your rate increases to 4%. That is still significantly below where rates are today.

So, after 7 years you've paid well below market rates on your mortgage. Guess what. The first 8-10 years is when you really pay your interest too.

Look at your amortization table. Notice the interest is a HUGE part of the overall payment.

After 8 years , you'd need to really think if it makes any sense to refinance now that the bulk of your interest has already been paid.

How about if you were thinking about buying a home. Should you rush in now to lock something in before the rates go highter?

NO! Don't do that! You see as rates increase, prices could decrease simply due to the fact higher rates makes certainly house price points less affordable. What does that do? Decreases demand.

Lower demand = lower prices. Economics 101. High demand, higher prices. Low demand, lower prices.

So, before you rush into to \