Interest Rates Predictions Going Up - What To Do
Posted on August 17, 2008
Filed Under Personal Finances |
If you have been following the mortgage interest rates forecast, you will have noticed that there is a growing trend for the mortgage rates forecast - and that trend is upward. Home owners have a very small window of time just now to lock in the current low interest rates before the Federal election. After that time, all bets are off. Interest rates will be cut loose from the political weights holding them artificially low.
Current Mortgage Interest Rates Predictions
Mortgage interest rates predictions are on the rise, because of a number of important economic pressures.
1. Mortgage interest rates predictions rise with rising inflation. Oil prices alone are enough to raise inflation right now.
2. Mortgage interest rates predictions rise when the US dollar falls against other currencies - which it has been doing these past few months.
3. Mortgage interest rates predictions rise when risks for lenders increase - because lenders always want to protect themselves and their money.
All these factors are present in the current mortgage market, which means that home owners can expect mortgage interest rates predictions to continue their upwards trend for some years to come.
Refinancing your mortgage can lower your monthly mortgage payment. Not only are current interest rates rather low, but if you have had your mortgage for any length of time, you should have built up some equity in your home, which means that your new mortgage will also be for a lower principal amount - that is, the amount you need to borrow will actually be lower.
Combining lower interest rates with a lower principal loan amount can reduce mortgage payments quite dramatically.
You can use an online mortgage payment calculator to work out what your mortgage payments would be if you were to refinance.
Current mortgage rates predictions for the USA are that mortgage interest rates will remain at historically low levels until after the Federal election in November, and then begin to rise sharply. Home owners in the US may not feel that mortgage interest rates are at historically low levels, because there has been a slow upward creep in interest rates over the past two years, and current mortgage interest rates are higher than they have been since early this century.
However, this view is only viable for those with short memories - and the very young. Not since the 1960s has there been such a sustained period of low mortgage interest rates. There is only a short window of time left to take advantage of these historically low rates.
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