Mortgage News

Don’t let your mortgage rate become the straw that breaks the camel’s back.

Mortgage rates are the cost of doing business in the housing industry. When you take out money from a lending organization, you are charged a percentage of the amount borrowed over time. But depending on the state of the economy, this rate can fluctuate considerably.

Homeowners naturally seek a lower interest rate because it means they will pay less over time on their loan. Here are some of the key factors to keep in mind if you are trying to plan your mortgage for an opportune time:

Employment rates.

Low unemployment implies growth within the general economy. More earning means more spending, and this typically incentivizes home loans and purchases. With more people seeking to purchase homes, however, the demand for mortgages rises and so does the interest rate.

Inflation.

This is another big culprit in pushing interest rates higher. Inflation is when the economy experiences an increase in prices, and a fall in the purchasing power of money.

If you can lock in a low mortgage rate when you secure your home loan, you will owe less over time and be able enjoy more manageable payments. However, even if you get a good mortgage rate you may still experience changes in payment over time. For example, anyone who chooses an ARM will pay less in the beginning and see increases in interest during the term of their adjustable rate mortgage. It may also be that the terms of your lending rate is subject to other fees, such as taxes or insurance premiums.

Click here to get more information about mortgage rates from our friendly team of experts at Midland Mortgage.