Mortgage Interest Rates

Mortgage Interest Rates
The New Year gives a​ lot of​ hope to​ those who are interested in​ applying or​ refinancing a​ mortgage loan .​
With interest rates fallen on​ an​ average by 0.8% from last year,​ this is​ the​ best opportunity to​ think about mortgaging your house.
The comparative rate last year was 7%,​ which now has been reduced to​ 6.2- 6.5 % .​
a​ survey conducted in​ the​ second week of​ January shows that the​ average interest rate for a​ 15-year fixed loan is​ 5.98% whereas that of​ the​ 30-year jumbo loans is​ 6.47% .​
This indicates that there has been little or​ no increase in​ the​ rates during the​ past one year,​ and it​ is​ well below the​ average of​ the​ past twenty years,​ that is​ 8% .​
However,​ the​ market experts predict a​ slight increase in​ the​ interest rates in​ the​ current year .​
For a​ 30-year fixed rate loan,​ it​ is​ likely to​ reach about 6.7%.
The interest rate for the​ 30-year FRM has not been affected by the​ Federal Reserve short-term interest rate .​
Over the​ past five years,​ the​ interest rate for the​ 30-year FRM has remained below 6.5 percent .​
When the​ Federal Reserve increased the​ interest rate in​ last June,​ the​ mortgage rate had reached at​ 6.93% .​
But later in​ the​ meetings held by the​ Federal rate-setting committee in​ August and later in​ September,​ October and December it​ was decided that the​ rates would not be increased,​ paving the​ way to​ the​ present scenario .​

The adjustable rate loan rates also show a​ tendency to​ fall down .​
As is​ seen from the​ comparison,​ the​ rates for the​ adjustable loans have also fallen in​ the​ past one year,​ though not very significantly .​
For a​ 30-year loan,​ with a​ fixed interest rate for one year,​ the​ average rate was 5.97% in​ the​ second week of​ January,​ where as​ that for a​ fixed interest rate period of​ five years was 6.17%.
There is​ an​ assumption that the​ Adjustable Rate Mortgage (ARM) rates are going to​ be revised in​ 2018,​ and the​ monthly mortgage payments of​ ARM borrowers are likely to​ increase .​
The households that can afford the​ heavy monthly payments shall only opt for a​ fresh ARM .​
Having a​ perception that the​ Federal Reserve will lower the​ short-term interest rates in​ the​ future,​ adjustable rate mortgage may be a​ better option .​
However,​ considering the​ upward trend of​ the​ interest rate of​ the​ short-term loans,​ your mortgage debt may end up to​ be a​ nightmare for you.
In the​ present scenario,​ debtors are trying to​ get out of​ the​ ARM as​ much as​ possible .​
This is​ the​ best time for refinancing your loan in​ order to​ avail a​ better interest rate for a​ fixed-interest rate plan .​
For those planning to​ buy a​ house,​ the​ interest rates may not be a​ prime concern; to​ an​ extent,​ the​ market value of​ the​ property is​ the​ deciding factor for them .​
But for those who think about refinancing the​ mortgage,​ this may be a​ better chance,​ and keeping a​ close watch on​ the​ interest rates will help them to​ pay off their mortgage loan in​ a​ smart way.
Mortgage Interest Rates Mortgage Interest Rates Reviewed by Henda Yesti on July 02, 2018 Rating: 5

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