Are you looking for a suitable mortgage loan? If yes, then this is the time to start shopping for the loan, since the rates are record low. Go through this article to know why to take out a mortgage loan in the first quarter of 2013 and how you can plan a suitable one.
Shop for a 10-year mortgage loan - The record low mortgage interest rates can help homebuyers to take out a mortgage loan with a relatively lower loan term. So, this is the time to take out a 10-year mortgage loan if your financial condition permits you to manage the required monthly home loan payments. Going for such a mortgage loan can help you save significant dollars on the interest payments, as compared to a 30-year mortgage loan. You can also think of refinancing your existing mortgage with a 10-year home loan. With the mortgage interest rates as low as 2.5%, you'll be able to save even more on a 10-year home loan as compared to a 15-year fixed mortgage loan. Therefore, if you have enough equity in your home, shop for a suitable mortgage and refinance your existing one.
Lower interest rates on a mortgage loan - The mortgage rates are expected to be much lower than 3.87%, which was the average rate on a 30-year mortgage loan in the year 2012. So, it is the time to lock in the interest rate if you're looking for a suitable mortgage loan. Doing so, you can save a lot of money which otherwise, you would have to shell out on making the interest payments. This is because the mortgage rate might go up a little bit with the change in the economy.
So, it is evident that this is the right time to take out a suitable mortgage loan; however, you need to plan a budget and calculate your affordability before you obtain a home loan. Buying a home is a huge financial investment and there are several other expenses along with making the monthly mortgage payments. So, do not hurry in taking out a 10-year mortgage loan just because it is offered at a lower rate and you can save money. Before obtaining such a loan, assess your financial condition to be sure that you will be able to make the increased monthly payments, as otherwise, you might have to face a foreclosure on your home.
Moreover, the lenders will require you to make a lump sum down payment and you need to have a good credit record and low debt balance along with a secured income to take out such a mortgage loan. So, it is better you repay your debts or reduce your outstanding dues so that it becomes easier for you to qualify for such a mortgage loan. You also need to assess your financial condition, plan a realistic budget and obtain a mortgage loan that suits you the best.