≡ Menu

Best Time To Buy In A Recession

The current low interest rates being offered by mortgage lenders is making this a great time to buy a home for those in the market for real estate.

Compare Home Loans

Have you taken the time to compare home loans and seen just how low interest rates are right now? It was not that long ago that you would have been fortunate to get a loan that had rates as low as 9 or 10%. Today, borrowers can purchase a home and get rates that are in the 4 percent range. This makes home ownership a definite possibility for anyone with a good credit score.

Low Interest Rates

Low interest rates mean that you will pay a whole lot less money in interest each month. More of your monthly mortgage payment will go directly to the principal of the loan and less money will go to paying down interest. Interest charges on a thirty year loan could force you to pay two to three times the value of your home. Low interest rates will keep you from wasting cash on unnecessary charges.

Smaller Payments

Another advantage of low interest rates is the fact that your mortgage payment will be smaller. A lower mortgage payment frees up your cash and gives you more money to work with each month. You can use the extra capital to pay down high interest credit card debt or you can send in extra principal payments to your mortgage company. Either method will move you closer and closer to being debt free.

Lower Rates No Matter the Credit Score

Low interest rates benefit borrowers who have average credit scores just as much as those with great credit scores. In the past borrowers with iffy credit had to settle for subprime loans that carry really high interest rates. Subprime borrowers had a hard time obtaining financing from a mortgage broker and traditional banking institutions. Now borrowers can find much more suitable loan products for them which lowers the risk of a potential default.

You can see how real estate buyers benefit from low interest rates. They can use a recession to pick up a low interest rate that will amount to significant cost savings.

Article publié pour la première fois le 23/11/2011