The Federal Reserve said that interest rates will be kept low for a while since housing and the job market are recovering slower than expected. Low interest rates can benefit those who are looking to buy a home or looking to refinance, so in light of this news many homeowners or potential buyers may want to consider their options.
Refinancing for a 30-year fixed rate mortgage when interest rates are low is going to not only help save money in the long run, but it can also help to lower monthly payments. Many homeowners who are having trouble with their finances and looking for assistance with their mortgage payment may benefit from refinancing with a low interest rate.
The alternative is a home loan modification, but many people are finding that to be a difficult road to travel and if you are in good standing with your mortgage then refinancing may be a better option.
Others who may be considering buying a home would also benefit from a low interest rate since, again, it can make a mortgage payment much more affordable and with the first-time homebuyer tax credit still in place, getting a new home has never been easier, provided you are on a stable enough financial ground to pay your mortgage.
Keep in mind that even though interest rates are said to staying low for a while, there is no guarantee. So, if there is a loan or anything interest-contingent you are looking to obtain, now may be a good time due to interest rates. Just be certain that a mortgage or personal loan, no matter how low the interest may be, still needs to be within your ability to repay.