At the moment current mortgage rates are fairly low; however, with the economy the way it is prospective borrowers could be a little hesitant to buy a home or refinance their current one. The average current mortgage rates in the US are as follows:
• 30 year fixed: 5.66 percent
• 15 year fixed: 5.04 percent
• 1 year adjustable: 5.8 percent
Interest rates fluctuate as the economy changes, but right now is a great time to buy a house if you qualify. The average current mortgage rates in the US have come down from last week, which were:
• 30 year fixed: 6.08 percent
• 15 year fixed: 5.50 percent
• 1 year adjustable: 5.61 percent
Borrowers can do their part to keep the current mortgage rates low by paying their mortgage loans on time and not to default on them. If you want to take advantage of the current mortgage rates try to prequalify for a mortgage loan. They should keep the jobs they have and weather the economic storm they are experiencing right now. You may have to cut back on luxuries to have the money to take care of your necessities, but if you can afford to take care of your commuting, and living expenses, and pay a mortgage loan, now is the time to buy a home.
Buying a home is probably the largest investment you will ever make. It is wise to purchase when the time is right. Your lender can help you decide which type of mortgage is best for you in terms of the current mortgage rates. If you don’t plan on staying in your home for many years you might find it more to your economic advantage to secure a loan with an adjustable rate mortgage (ARM). At the end of your term, if the next term’s ARM is higher than you want to pay you can change to another type of mortgage plan, or you can sell your home, pay off the rest of your mortgage and keep the profits.
Many younger people that are just starting out buying their first home may decide to secure a loan for a 30 year fixed mortgage; however, the homebuyer should look at the 15 year mortgage plan because not only is the term of the mortgage cut in half, but the interest rate is also lower than with the 30 year mortgage at this time. By securing the 15 year fixed mortgage loan the homebuyer will be saving many thousands of dollars.
If the thought asking for a mortgage loan is causing you anxiety, talk with a financial advisor at your bank or other lending institution. Your advisor can talk to you about the current mortgage rates and how they will affect the cost of your loan.
The current mortgage interest rates are very low right now and more people that have been renting homes are finding it more affordable to purchase their homes at this time. If you are renting your home that is money just thrown away, but if you buy your home you are making an investment. Buying a home is like putting money in the bank, because as you pay down the principal part of your mortgage loan you gain equity in your home.
Though the economy is a bit shaky, more people are taking advantage of the current mortgage interest rates to finally own their own homes. First time buyers get a tax break; they can deduct the interest you paid on the loan for the previous year. If you paid points to get your home, you can deduct up to what those points cost you. If you paid $6,000 for points, you can deduct that amount from your taxes. Due to the current mortgage interest rates it is in your favor to itemize all your house expenditures that you are entitled to on your tax forms. You can clearly see why owning your home is much more to your advantage than renting. Aside from the current mortgage interest rates saving you money, you can also save money by deducting your real estate taxes from your income taxes.
Everyone that wants to buy a home should take advantage of the current mortgage interest rates. The advantages of buying far outweigh the disadvantages of renting. Another charge you may be able to deduct from your income taxes is the private mortgage insurance (PMI) premiums you have to pay if your down payment is less than 20 percent of total cost of your home. This deduction is dependent upon your income: the income limit is $50,000 on a single tax return and $100,000 on a joint return. This is a new write-off for homebuyers that got their mortgages in 2007. People that bought their homes before 2007 are not eligible for this write-off.
There are so many advantages to owning your home that it makes sense to take advantage of the current mortgage interest rates. Buying a home can seem a bit daunting, but with the right help most of the work can be done for you. A real estate agent can help you narrow down your choices for your home, and a mortgage broker can help you get the best possible current mortgage interest rates. All interest rates are not the same; however, mortgage brokers have a little more leeway to negotiate the lowest possible rate.
Whether you find your home on your own or employ an agent or broker, your objective is to get the best home for the lowest percentage of the current mortgage interest rates. Once you make your decision to buy a home you will have made an investment that will put money in your pocket over time.
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