Mortgage rates being slow doesn’t make for a booming housing market. Since the real estate market is so slow, and mortgage rates have gone down substantially, most are more able to find opportunities in the market. Since prices of homes are as low as mortgage rates are, short term losses are taken by numerous for the gains that come with a lower interest rate. Most are trading up to better homes but end up with a lot more money within the end. Numerous feel completely comfortable spending money to refinance the mortgages they have.
The U.S. housing market and just how it does with low mortgage rates
Economists told the Wall Street Journal that right now, trading homes or refinancing your home is going to make a huge difference to your cash flow. Anyone who can sacrifice a little sweat and money could be able to get a home that is way better than the one they’re used to. Everyone can afford larger homes with all the mortgage rates so low.
Cash in or cash out
Typically, individuals refinance to “cash out” some of the equity they’ve built up in their homes over the years so they can use the cash. Oddly enough, more people have been interested in “cash-in” refinancing, according to the Los Angeles Times. It makes sense that individuals would put more money into their home considering that’s one of the most stable investments now and days. A 3rd of everybody who refinanced their home in 2009’s 4th quarter all put more money into it than money they could have taken out of it.
Invest in real estate with your brains
Numerous want their mortgages to be gone. Totalmortgage.com reports that interest saved is interest earned. When paying down a mortgage, the faster it can be paid off, the more money could be put towards other investments. Real estate investing like that is a breath of the outdoors these days. Other borrowers are taking advantage of record-low mortgage rates to refinance from 30-year fixed mortgages into shorter-term mortgages (15 or 20 year fixed). Monthly payments are often less than before, and consumers save thousands of dollars doing this.
Additional reading
Wall Street Journal
online.wsj.com/article/SB10001424052748704421304575383490870014662.html?mod=WSJ_hpp_sections_personalfinance
Los Angeles Times
articles.latimes.com/2010/jul/11/business/la-fi-lew-20100711
Totalmortgage.com
totalmortgage.com/blog/mortgage-rates/low-mortgage-rates-afford-unique-housing-opportunities/5198
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