· Fixed Mortgage rates have moved higher – Fixed-rate mortgage rates are at their highest levels in almost eight months. One of the factors pushing interest rates higher is the continued fear of inflation.
· Do your homework – Before refinancing a mortgage or taking on a new mortgage. · Adjustable Rate Mortgages (ARMs) – While traditional adjustable rate mortgages have a place for the right borrower, the "exotic" products we read about in the news are largely extinct for new borrowers ? · HELOCs – (Home Equity Line Of Credit) these credit lines can appear to be provide inexpensive access to capital following the aggressive FED interest rate cuts. That said, these types of loans typically float with a benchmark rate (ie. Prime) which moves in tandem with the FED interest rate adjustments to the FED Funds Rate. If inflation continues to rise and stay above the comfort level of the Federal Reserve, rate increases could be forthcoming. · Converting your Home Equity Line of Credit – If you are concerned about the impact of risking rates over the coming years and have a variable rate line of credit that you know will not be paid off for a long period of time consider refinancing or converting to fixed rate second mortage. · Find the right mortgage advisor – it is more important that ever to partner with the right mortgage advisor to lead you through the myriad of challenges facing borrowers today.
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