A recent article posted by Forbes magazine states that major changes will be taking place in the housing market in 2014. Although some of these changes are for the better, such as a reduction in home prices and a decrease in foreclosures, some of them aren’t positive at all. For example, it is estimated that home mortgage rates will rise to more than five percent by the end of the year, which can make for a significant increase in your mortgage payment.
If you haven’t thought about refinancing yet, now is the time. With mortgage rates holding steady in the low three or four percent range, it’s a great time to get locked in. Even though some experts claim that five percent is still a low rate for a home loan, it is significantly higher than what many people are paying by locking into a low fixed rate now.
If you have been waiting around for rates to go even lower, the experts predict this won’t happen any time soon. Although rates have not climbed too high yet, they are expected to steadily increase throughout the year. The present is definitely the time to talk to a loan officer about your options. Acting now will allow you take advantage of the low interest rates that are still available to homeowners, which might not be seen again for several years. Even if you aren’t currently a homeowner, you can take advantage of the benefits of a low interest rate by purchasing a home before it’s too late.
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