Monday, November 19, 2012
Are you thinking about making a large purchase and wondering how to do it? Maybe you want to invest in a new car but are struggling to raise the capital? Despite these tough financial times, home owners always have options and we are here to help walk you through some of the choices available to you and explain why now is a great time to consider your options.
Home owners thinking about freeing up some cash have the option of investigating the possibility of refinancing their property and it’s not as difficult as you may think. There’s a whole host of options out there for property owners who are looking to refinance their house or apartment. In fact, now is a good time to do it because lending rates are very low which has boasted the amount of people who are taking our refinancing packages. Lower mortgage rates means that less interest is charged on mortgage repayments which in turn can make monthly payments much more manageable. In early November, USA Today ran an article detailing how US rates are almost at a record low which has led to more people buying homes as well as refinancing their existing property. Refinancing packages are a great idea for people who are looking to make a large purchase such as buying a car, but do not have other credit options because of a problematic credit history. Freeing up some cash by refinancing a property is a good way to effectively get car loans with a bad credit history.
It’s a good time to refinance as mortgage rates remain at their lowest for years
The statistics from The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, shows that on a loan which spans 30 years, the rate has recently declined from 3.41 per cent to 3.39 per cent and just a few short weeks ago it hit its lowest level since 1971 when it was just 3.36 per cent. Although rates fluctuate, forecasters say that they will remain at these low levels for some time to come. Similarly, the rate on a 15-year fixed mortgage decreased to just 2.70 per cent. This is particularly significant because a 15-year term is often what people choose when considering their refinance package because they see it as a good way of freeing up cash and taking full advantage of the low payback rates.
Alternatively, homeowners thinking about refinancing may want to look at the market in general and discuss the possibility of buying a new home. Is this the time to buy a bigger and better property? There is a school of thought amongst economists right now that answers ‘yes’ undoubtedly because people can save a bundle of cash while the interest rates are at the lower end of the scale. Perhaps if you have been thinking of making a move into a larger and more expensive property, this is the time to turn that into a reality and take full advantage of the borrowing market. There’s a general feeling of optimism in the housing market right now too with much focus on encouraging people to buy properties and refinance their existing homes. It’s been a hot topic that has been heavily debated in the pre-election campaign with both Obama and Romney airing their views on ways to kick-start the US economy and encourage people to spend.
Sure signs the housing market is making a good recovery
Further evidence of a housing recovery are the major developments going on in the construction industry which has seen more construction work recently when compared with the last four years. More US builders worked on family homes and apartments in September 2012 at the fastest rate since July 2008, more proof that the housing market is making a good and stable recovery. The Financial Post has reported how applications for building permits have also increased by around 12 per cent since July 2008, another sure sign of intent that more properties are being built. Generally good vibes are rippling through the US economy with more confidence in construction, lower interest rates for borrowers and more and more people deciding that now is the time to make a purchase and get the most from refinancing packages.