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If You're Going For The Boom, Check Out Those Mortgage Rates

Dec 24, 2007
The recent rise of mortgage rates has halted to a skid due to the readiness of prospective borrowers to get a mortgage or refinance. This may not augur well for couples looking for a chance to have their own homes. This is on top of the rising credit crunch. But still you can own your own home without going for broke.

The Highs and the Lows of Interest Rates

The housing boom picked early this decade and continued to entice prospective home buyers to get a home loan. Inflation then was not an issue, and the housing economy was stable. People could afford to buy homes in plush neighborhoods in Florida, Arizona, and California. Interest rates were not steep then.

Many cashed in on the boom, buying and selling houses, which made them instant millionaires in a short span of time. Soon the prices of houses soared, competing with the interest rates and then the crash. Prime properties bought for a king's ransom were sold on auction for a pittance of their purchase price.

Currently, interest rates are still see-sawing between highs and lows. At this time, if you're thinking of getting a loan, think in terms of interest rates and lock in to the lowest rate that comes up. A fixed rate mortgage will be a better choice in these uncertain times. You'll be able to manage your finances without fearing those sudden interest hikes.

Don't Be A Borrower If You're Taking Risks

Borrowers with spotted credit records and low income can get loans but at high interest rates. Companies are offering a menu of loan programs to suit different financial requirements, but this will sound like the death knell of many a borrower. If they are not careful, they'll be taking a downward spiral towards busting their dreams.

If you have some apprehensions about taking out a home loan, you might be right on your instincts. If you're dreaming of having your own home, check out the following:

1. Are you gainfully employed?
2. Is your income sufficient to live on, despite a monthly reduction for the monthly fees for your home loan?
3. If you are married, is your spouse employed or self-employed?
4. Are you expecting a rise in income in the next few years?
5. Are you getting a house that's decently priced within your means?

If you've answered yes to all these questions, you're a candidate for a successful loan. So if you're currently shopping for a home loan or thinking of getting one, get the going mortgage rates and how much the lender can offer you after meticulously going through your records. This way, you'll be able to know how much loan you can get and the going mortgage rates before you can decide if you can afford your neighbor's two-bedroom house.

Be a Wise Borrower

Look around for lending companies that disclose their Annual Percentage Rate (APR). The APR will disclose the true cost of the loan. This will be expressed in yearly rates and will include all the costs that will go towards the acquisition of the loan.

Check out the four types of mortgage rates - fixed rate mortgage, adjustable rate mortgage, jumbo loans, and balloon mortgages. All of these mortgages come in different packages with their advantages and disadvantages. There are no perfect mortgage rates, but you can determine which mortgage will give you the best deal.

Don't rush; remember that haste makes waste. When everything has been planned out carefully and the mortgage rates have been compared, expect to ride in the boom in the near future. The loan you take out may just be the thing you'll ride on towards the boom days.
About the Author
Check out the ongoing mortgage rates before you take out a California refinance or refinance home loan . Visit WhatAboutLoans.com today.
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