(Newswire.net — March 1, 2013) Dallas, TX–Interest rates have been at an all time low for the past four years and its no surprise Fox News Business and Yahoo Homes are predicting mortgage rates to be higher at the end of 2013 than at the beginning of the year.
One reason for the current low interest rates is the federal government’s action to buy up mortgage-backed securities. Government officials have indicated that as the economy picks up steam, that policy will end, adding pressure for interest rates to rise. Yahoo Homes notes that following the inauguration of President Obama for his second term, experts believe uncertainty in the markets could subside, the economic recovery could stabilize, unemployment could drop and interest rates could be on the rise.
Guild Mortgage in Sherman, TX, has assisted several people in refinancing during the last four year run of low rates. Loan officer Sabrina Wegley said “If it’s been a while since you took out your current mortgage loan, your rate may be substantially higher than the current going rate. This gives you the opportunity to potentially reduce your monthly payment by a substantial amount before the days of the low interest rate mortgage is gone.”
One way to determine if a refinance makes sense is to figure the amount of time it would take to pay off the closing costs for a refinance loan, although they can be higher if you buy down the interest rate by paying “points,” or a percentage of the total loan amount – using the savings towards your monthly mortgage payment.
With rates this low, everyone should consider a new mortgage if they can afford it. Whether you are currently renting, buying a new home, or refinancing your existing home, the experts recommend that the time is now to capitalize on low interest rates.
runitfree.com
Sabrina Wegley swegley@guildmortgage.net
guildmortgage.net
www.facebook.com/runitfreetx
###