How low are current mortgage rates?
If you plan to keep your home for the next 30 years and you are able to lock in at a 6 percent rate, the security and comfort of knowing exactly what your payments will be over the life of the loan often outweigh the short term financial benefits of an adjustable rate. • While ARMs averaged 0.5 percent to 1.2 percent lower than fixed rate mortgages during the last 10 years, and still start off at interest rates lower than fixed rate mortgages, past performance is not necessarily an indication of what the next 10 years may bring. • Because ARM rates are lower than fixed rates, monthly payments start out lower as well, which means you may be able to qualify for a higher mortgage than you would with a fixed rate. • You can always refinance to a fixed rate mortgage, although, it’s impossible to know whether fixed rate mortgages will ever again fall as low as they have in the last couple of years. Refinancing costs should also be a consideration. • Apply now for a home loan! The tips on thi
