Would Mortgage Interest Rates Rise or Go Down Further?
This seems to be topic of conversations between homeowners and prospective mortgage applicants
. There are many experts giving opinions in the press and on TV. There are a few who has experienced high interest rates and worried about possible increase. They may have already taken action to fix their mortgage interest rates while they are low.
The truth is your guess is as good as anyone's when it comes to economy. The mortgage interest rates are record low at the moment. To expect them to go much lower is not realistic. Because the base rates are already near zero and there are plenty refinance home mortgage loan applications for the lenders not to go into cut throat competition with each other. Remember how much a barrel of crude oil went down, but the price of petrol on the pumps did not really go down that much at all. The banks and oil companies have a way charging people.
However, more and more people are failing to make their payments. The question is that does homeowner needs financing? How long more they can keep up with payments before running into difficulties? Would they still have a good credit score next year? Once a homeowner falls behind payments, the refinance home mortgage loan with good interest rate option may not be available for them anymore.
Probably the most important question a homeowner considering refinancing should ask is not how low the mortgage interest rates can go from here. What happens if the interest rates go up 2%, could the homeowner still be making the payments comfortable. This is the question. The worst case scenarios must be taken into account when dreaming of even lower interest rates.
Home mortgage payments are the largest expense in many household budgets. Anyone preparing a long term financial plan for the though days ahead, needs to look at the mortgage payments first. While they are looking at it, they could check to see if they could consolidate high interest credit card and personal loan debt into possible refinance mortgage. Homeowners who like certainty in their life would want to fix their mortgages in this low mortgage interest environment. That would be one less thing to worry about.
Would Mortgage Interest Rates Rise or Go Down Further?