| With
interest rates at record lows over the past year, there's really only
one way for them to go, the only question is when. Most experts agree
that rates will remain fairly stable in the short term, at least until
the end of the year, and some believe they will even decrease slightly.
However, the prospect of a sharp increase in 2005, continuing into the
following year will have many mortgagees feeling uncomfortable. Those
most at risk when rates begin to rise again will be borrowers who have
been over eager to buy in to the mortgage market while rates were low,
without taking the time to secure the best possible deal, or to
consider their position in the long term. The low interest rate
environment has been ideal for aggressive, unscrupulous lenders to
encourage customers to borrow more than they need, or agree to
repayment plans they can't realistically afford, particularly when
rates begin to rise again. Being in a hurry has also meant many people
have been less careful about checking terms and conditions of the loans
they are agreeing to. To make matters worse, many homebuyers have been
swayed by low interest rates into paying too high a price for their
property. Some financial experts believe interest
rates will remain low long enough for an adjustable rate mortgage to
continue to be an attractive option, but borrowers will need to be
quick. With rates set to rise, an ARM would seem an irrational choice,
but this type of loan is still surprisingly popular. Overall rates for
this type of loan are generally lower than rates for fixed term
mortgages, and for those planning to pay off the loan in a reasonably
short time, the remaining period of very low interest rates will still
be an advantage. Many experts also believe it's still not too late to
take advantage of low rates to refinance a home loan package. The key
for borrowers is to keep their cool when negotiating a deal, read the
fine print, and think about the long term picture. David
Cannell is a freelance writer and university educator and also the
owner of http://www.property-raider.com
David Cannell
 Do you Want to be the boss of your family's new
custom dream home project, and legally pay for everything with someone
else's credit card?
If you answered "Yes,
I Do!", then you have my permission
to read this entire web
page ... Click Here to find out how |
|
|
| 
