As you might have heard already, mortgage interest rates have been slowly rising for a couple of months now. This is true for both government-backed mortgages and conventional mortgages. The good news is that rates were so low a couple of months ago that even after two months of increases, the average rates on 30 year fixed mortgages in the US were still in the 4’s as of last week. That is still a surprisingly low number.
People who have adjustable rate mortgages (ARMs) have also benefited from the low rates recently without even refinancing. Most people with ARMs have seen their payments drop over the last year. However, the problem with ARMs is that the higher overall rates get the higher their payments get. So while someone with an ARM might be enjoying paying something like 4% on their loan now, they could find themselves paying 6-10% on the same loan in the years to come if rates continue to rise.
If you have an adjustable rate mortgage now might be a good time to contact us to look into programs that will allow you to lock in a fixed rate below 5%. If current trends continue the opportunity to get a fixed rate that low could be passing quickly.
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