Jump off the Rate Fence - It's The Right Time!
You may have heard that rates might go down to 4.0%. This may happen for some homeowners via the ARRA; but since no one knows what's going on, yet, I'm going out on a limb to tell you why I don't believe we will see 4% rates:
1. A total of $900 billion ($72 billion for economic aid) is going to be infused into our economy per the ARRA (American Recovery & Reinvestment Act). More money, less fear, more confidence = Rates go up.
We are truly in a pattern of low rates/historical rates, however you want to define it. I call it "the sweet spot".
If you have the opportunity to lower your rate by a point, increase cash flow/save money per month, lower your time in your mortgage, buy a home a rates below 5.5%, this is the sweet spot. Spread the word - now is the time. I gingerly say to my clients who are floating rates, "don't be greedy". I think it's a fair statement given the statistical data. Enjoy the opportunity, hop off the fence, and know that you've made a great decision regarding your financial future!
This informatin has been provided by Megan McDonald from Excel Home Lending.
