Perhaps you are living in a home you love. You like the community and your neighbors. Your home is conveniently located in a neighborhood that is close to shopping and good schools with access to highways or public transportation.
Your research reveals that home interest rates have reached the lowest point in approximately 40 years and you would like to obtain some benefit from this milestone. Selling your home is not a consideration; what type of action should you take?
Following is a sample of types of mortgage loans with current interest rates as of this writing, last week’s interest rates and changes:
|Mortgage Loan Type||Today||Last Week||Change|
|15 Year Fixed||4.085%||4.268%||0.18%|
|30 Year Fixed||4.609%||4.743%||0.13%|
|40 Year Fixed||4.797%||4.930%||0.13%|
|1 Year ARM||3.210%||3.334%||0.12%|
|3/1 Year ARM||3.380%||3.545%||0.17%|
|5/1 Year ARM||3.361%||3.514%||0.15%|
If you have a good credit history and stable employment or own a business that shows consistent profits and you have reasonable savings, buying a home for investment purposes at this time makes good fiscal sense.
Since home prices and interest rates are so low, you can rent this house while building equity since affordable rental properties are becoming a desirable commodity in this economic crisis for those who are unable to buy their own home. As a landlord, you can rent the house for as long as the housing market is in decline.
When the market stabilizes and then begins to rise again – as it inevitably will though no one can predict when this can happen – you can either sell the house at a profit or keep renting and building equity.
Tasha specializes in Dallas apartments for rent focusing on Downtown Dallas Apartments.
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