Mortgage rates constantly fluctuate. There are always predictions floating around about where the mortgage rates are headed. Right now at this point, mortgage rates are great but where will they be a year from now?
What are indicators that the rate is getting ready to change? How are the predictions made? Experienced mortgage lenders know what to look for and provide the advice their clients need to make the right decision about their mortgage.
Why Are Rates So Important?
One of the reasons that people watch the mortgage rates so closely because it can greatly affect the potential monthly payment on a mortgage. Your monthly payment can vary by hundreds of dollars depending on the rate.
Knowing when to secure your mortgage because of low rates can save you thousands of dollars over the lifetime of your home loan. It can be the greatest influence on how much you wind up paying. Using a mortgage calculator and plugging in different rates can help you to get an idea of how important it is to keep your eye on the rates.
The Predictions
The first question many borrowers ask is how reliable are mortgage rate predictions? It largely depends on your source but there is one thing that you can bank on, when rates are low and experts are predicting that they will climb, there is a very strong possibility that they will.
What comes up will eventually come down and the reverse is true as well. What starts low will eventually climb higher. Rates have been very low in the last few years, there will be a point soon when they start making that climb again.
Some Tips for Dodging The Increases
One of the best ways to lock in your rate now, is to buy now before the rate hike rears its ugly head. If you have a higher rate mortgage, then refinance now and lock in that lower rate.
There were some predictions last year that said the rates would be at a much higher point then they are which was wrong but there is a strong likelihood that they will not go down much further. Speak to the experienced mortgage brokers in Texas that can keep you in the loop and help you to make sense of all the predictions.
