Thursday, November 7, 2013

Smart Homebuyers Are Locking In Ultra Low Rates Before The Fed Hike

Are you a smart home buyer?
By +Sarah Marrinan - Keller Williams Premier Realty 
The recent mini spike in mortgage rates has homeowners scrambling to save thousands over the next several years by locking in a rate today. Many homeowners are just now recuperating from seeing their home values plummet in the past, to finally seeing positive equity, so now is the time to take advantage of low-rate mortgages before rates begin climbing higher.
The Fed lowered short term rates several years ago to near zero in an effort to revive the economy. Now that we are seeing a recovery it's expected we will begin to see rates escalate to normal levels. Historically, rates on 30 year loans are usually between 5.50%-7.25% and higher. Below is the difference on a $200,000 mortgage for a 30 year term at an available rate today of 3.25% vs 6.75%.
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