by Gayle M. McCarthy, Branch Manager, American Pacific Mortgage
When considering a mortgage, whether it be a new purchase or a refinance of a current loan, consumers are concerned about timing. If rates continue to increase, locking in a rate now may be a savings.
Why are interest rates rising? Our economy is doing well. Rates were kept low to help stimulate the recession recovery. Now that the economy is improving, rates are being increased gradually.
Historically, current rates are still low. While industry experts expect continuing increases, any number of economic events could produce different results.
How does this affect a mortgage? Higher rates mean higher payments. This will impact borrowing power.
The best strategy is to consult with a mortgage professional and analyze your financial situation and goals. Understanding rates and what influences them will assist you in making an informed decision. There are many ways to structure a mortgage to provide savings, even if rates are higher than previously. A mortgage professional can provide all options to consider.
