Timing on Refinancing is Perfect Now..If You Qualify

There is a bright spot in today’s faltering economy. If you are in the market for buying a home, or are comparing renting to owning a home, the timing is excellent for purchasing real estate. The lowered value of real estate coupled with some of the lowest mortgage rates in 37 years can mean a monthly payment that can be equal to or even lower than the amount you’d pay for rent each month.

If you’re lucky enough to have job security and a good credit record, you should look into shopping for a home now. From an investment standpoint, many homes are presently undervalued and when we come out of this economic slump, the odds would be favorable that you could realize a profit when selling years down the road. Also, if you are a first time buyer, when comparing a mortgage payment to the high cost of rent, at least you’re investing in something for your future.

Some of the historic lows on interest rates on loans are, according to Quicken loans website as follows; 4.875% for a 30 yr. fixed loan, 5.5% for a 30 yr. FHA express loan and 4.375% for a 15 year loan. If you’re buying for the first time, the moment is now. Also, if you’re interested in refinancing, you can benefit if you are in an adjustable rate mortgage and you want to lock in at a low rate for 30 years.

You may also benefit if you have other outstanding high interest debt, you may combine it to a lower monthly payment with your home and save money on interest and qualify for a tax deduction. Consumers who are looking to lock into a 30 year fixed rate that is lower must have an excellent record to qualify. If this is the case, the timing is right to rearrange your present mortgage loans now. If you are looking to so home improvements and repairs, you can refinance with a great rate and access cash out for repairs.