Well over a dozen times the Federal Reserve Bank has been raising Mortgage Interest Rates since 2003. After bottoming out at historic low rates, Mortgage Interest Rates are climbing and presenting a problem for some homeowners as well as for people seeking to buy a new home. How can you combat rising Mortgage Interest Rates? Well, you have a few options available to you so lets explore what they are in order to keep you sane and financially solvent. Interest Only Mortgage If you took the bite on an Interest Only Mortgage, then you must refinance now in order to avoid being devoured later. Interest only mortgages have been one way for new homeowners to get a home where no other way existed. Unfortunately rising mortgage interest rates mean that future payments will leap by hundreds of dollars per month once you have to refinance. Refinance now or pay a big price later. Adjustable Rate: Still a Good Thing? -- Despite rising mortgage interest rates, an adjustable rate mortgage could still make a lot of sense especially if you plan on selling your home before the adjustment period kicks in. Your monthly mortgage payment could be hundreds of dollars lower with an adjustable rate mortgage. Fixed Rate, Old Dependable A fixed rate mortgage is the old standby in the mortgage portfolio. Typically, a 30 year mortgage is secured by new homeowners who keep paying a fixed rate for the life of the loan. In some locales, 40 year even 50 year fixed rate loans are available. Consider the added costs of the longer loan, but it may be the only option for you if you live in a pricey area. Government Programs A lifesaver for some, various government programs have assisted homeowners in the face of rising Mortgage Interest Rates. A VA loan could be the perfect choice for military families and retirees; the FHA backs loans for many homeowners; state programs are available for low and moderate income homebuyers; and some cities offer special programs for people who buy homes in distressed neighborhoods. Explore the HUD for options too and check with a qualified mortgage broker to learn what options are available for you. Yes, Mortgage Interest Rates are likely to continue to rise at least for the time being. Dont get stuck; fight back against rising mortgage interest rates by exploring your options today for peace of mind and financial security. |
