Mortgage rates being slow doesn’t make for a booming housing market. As the real estate market is so slow, and mortgage rates have gone down considerably, the majority are more able to discover opportunities within the market. With mortgage rates and home prices so low, brave borrowers are taking short-term losses to make long term gains. The majority are trading up to better homes but end up with a lot more money in the end. Others are learning that spending their own cash to refinance mortgages is one of the safest investments to make these days.
Mortgage rates at record lows with a poor housing market
You’ll end up with a lot more money if you listen to the economists in the Wall Street Journal who suggest trading up homes or refinancing your home you’ve now. Better homes are available to everyone who’s willing to make the sacrifice with their mortgage. And with mortgage rates so low these buyers can keep their monthly payments manageable, despite the fact that the new homes are more costly.
The main difference between cash in and cash out
Typically, individuals refinance to “cash out” some of the equity they’ve built up in their homes over the years so they can use the cash. Oddly enough, more individuals are interested in “cash-in” refinancing, according to the Los Angeles Times. It makes sense that individuals would put more money into their home considering that’s one of the most stable investments now and days. A third of everybody who refinanced their home in 2009’s 4th quarter all put more money into it than money they could have taken out of it.
Invest in real estate with your brains
Most individuals are trying to pay off their mortgages as soon as possible. You will have all that money you saved on interest for spending now, reports totalmortgage.com. When paying down a mortgage, the sooner it could be paid off, the more money can be put towards other investments. It’s nice to see individuals being willing to invest in real estate like that now. Numerous individuals just want to refinance in order for their loan to become a 15 or 20 year loan rather than a 30 year loan. Monthly payments are often less than before, and consumers conserve thousands of dollars doing this.
Further reading
Wall Street Journal
online.wsj.com/article/SB10001424052748704421304575383490870014662.html?mod=WSJ_hpp_sections_personalfinance
Los Angeles Times
articles.latimes.com/2010/jul/11/business/la-fi-lew-20100711
Totalmortgage.com
totalmortgage.com/blog/mortgage-rates/low-mortgage-rates-afford-unique-housing-opportunities/5198
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