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July 11, 2005
Mortgage Rates
The past few years has seen interest rates reach all-time lows, and stay at these levels for far longer than they ever have before. Mortgage rates, which are based largely on the going interest rate, have undergone a similar trend. While real estate can be a great investment opportunity, this article will focus on mortgage rates and how they affect the individual home buyer. The most obvious impact of lower mortgage rates is that the total cost of someone’s home is noticeably decreased. There are also other advantages that can be achieved by the average person during this time of low mortgage rates. Increasingly common is the act of mortgage refinancing. This is when you change the rates on your existing mortgage to take advantage of the lower mortgage rates that exist in today’s marketplace. The benefit of this is simply lower total housing costs.
Mortgage refinancing can also be used to consolidate your debt at the low mortgage rate levels, instead of potentially much higher rates that you are already paying. As well, many people will use a mortgage to finance other large expenditures, for example paying for a child’s education. Financing in this manner can be inexpensive when mortgage rates as low as they are today. Most individuals automatically assume that the low mortgage rates will only have a substantial benefit for those that are currently in the market for a new home. However, with some careful planning, any home owner can take advantage of the low mortgage rates to help save some money.
Posted by ben at July 11, 2005 1:33 PM