Homeowners looking to refinance or homebuyers looking for a low interest rate on a 30-year fixed rate mortgage are able to currently get a rate around or below 5%. Many current homeowners are looking to refinance to this lower mortgage rate in the hopes of getting a lower monthly mortgage payment and new homebuyers are finding that buying a home is very affordable now since housing prices and rates are low and the first-time homebuyer tax credit is still being offered.
Many people have been worried that these low mortgage rates are going to start rising soon, as they have been low for a very long time. However, other analysts feel that rates most likely will stay at the current low level since the housing market still isn’t as strong as is should be.
Homeowners are struggling to make mortgage payments as unemployment still takes a toll on many people’s personal finances. However, homeowners and homebuyers that are doing well financially are looking at a housing market that can produce an affordable monthly mortgage payment.
While low interest rates are ideal for refinancing and buying a home, homeowners and homebuyers should do their research and make sure they know all the details of what buying a home or refinancing, will entail. There are costs to refinancing, which current homeowners need to be aware of, and for homebuyers, owning a home is a big responsibility. One should only set out to take advantage of these low interest rates on mortgages if it is in their best financial interest.