Mortgage rates are still low, but they are going up. This is creating a rush of people looking to buy homes before interest rates rise again. While it is difficult to predict when rates will go up again, it is hard for rates to go any lower. Homeowners and buyers need to act now before rates go up. What should homeowners do before rates rise?
Sell Now While Rates Are Low
Anyone who is thinking about selling their house should make every effort to do so now before rates go up again. Because there are so many people who are looking for houses, sellers can get top dollar for their homes, maximizing their profits. This is a great opportunity to move into a larger house to accommodate children, sell a home and downsize, or even sell and move somewhere else with work conditions changing. Interest rates will probably rise in the next few years, forcing buyers out of the market. This could make it harder for sellers to get top dollar for their homes in the future.
Refinance Now While Rates Are Low
In addition, now is a great time to refinance a current mortgage. Homeowners who have been in their homes for a few years might be able to refinance their loans to lower interest rates. This could allow homeowners to lower their monthly payments, pay their homes off sooner, or access equity in their homes to complete an expensive repair process or renovate a portion of their homes. Instead of having to move to a new home, homeowners might be able to upgrade their current living situations by accessing equity through a refinance. Even a small change in interest rates could have a significant impact on the monthly payment.
Act Now While Interest Rates Are Low
These are just a few of the moves homeowners need to make before interest rates rise again. Because interest rates are still low, there are many people looking to buy a home and many others looking to refinance. Even if interest rates rise slightly in the future, this can have a massive impact on the market. All homeowners and buyers need to take advantage low interest rates before they rise. This includes moving up, refinancing, and downsizing.
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About the Author:
Babak Moghaddam graduated from University of Southern California in 1985. He entered the mortgage industry as a compliance auditor at the Bank of New York in 1986 and completed his masters in Business Administration two years later. After seventeen years in the traditional mortgage banking world Babak finally transformed this vision into his own practice in 2002 when he formed Charter Pacific Lending Corp, a mortgage company that has provided over $900 Million in residential real estate loans throughout Southern California. Babak and his team do things a little differently than other mortgage providers. They work as financial advisors, because they have come to realize that a mortgage is a very powerful financial tool. And just like any other financial tool, it should be managed as part of the overall financial management plan to reach every home owner’s long and short-term financial goals much faster. You can contact Babak for a free consultation and strategy session at (800) 322-1217 X103.