Because of the pandemic and the financial uncertainties, the economy has been uncertain and the Federal Reserve has kept interest rates low. The economy is currently slowly returning to pre-pandemic levels and as such, there may be interest rate hikes coming. While the Federal Reserve interest rates don’t have a direct impact on mortgage rates, those mortgage rates are affected by other parts of the financial market. The general rule is when other interest rates rise like credit cards, mortgage rates will eventually rise as well. Financial analysts predict that there will be interest rate increases in the coming months, so if you are considering a mortgage, now may be the best time to do so.
New Mortgage vs. Refinance
Both new and existing loans are currently ripe for low interest rates. Pre-qualification for a new loan is free with United Heritage. Getting a pre-qualification will help set your budget for a home search and can help determine your spending power. For existing loans, refinancing can give you an opportunity to lower your interest rate and possibly save money each month. Refinancing can also offer you shorter terms on your loan so that you can pay off your loan sooner.
Using the equity in your home can offer significant savings compared to other loans. Like a mortgage, a home equity loan often comes with very low interest rates when compared to personal loans or credit cards. At United Heritage, we offer several ways to use your home’s equity depending on what’s best for your needs. We offer home equity lines of credit (HELOC) or even a First Lien Cash Out program. Both of these offer low rates and are easy to apply for. Our loan specialists are prepared to help you determine which loan might be the best for you and your current financial situation and goals.
Fixed or Adjustable Rates
Depending on your financial situation, you may choose either a fixed or adjustable mortgage rate. A fixed rate is just that, a rate that does not change for the life of a loan. An adjustable rate changes with the current market rates, so be aware that if market rates increase, so does your monthly mortgage payment. Choosing an adjustable rate loan may be right for you if believe that your finances may change over the coming years. A loan specialist will work with you to figure out the best loan for you. If you currently have an adjustable rate mortgage and are interested in refinancing to a fixed rate loan, we can help with that, too.
If you’re looking to become a first time homebuyer, looking to upgrade your home or to use your home’s equity, we can help. Our loan process is easy and we’re ready to help you each step of the way. You can apply online or call to speak with a loan specialist to get started saving money now!