What The Recent Drop In Mortgage Rates Means For You
(FinancialHealth.net) – Homebuyers and sellers received some good news to kick off the new year. In the first week of January 2020, the average 30-year fixed mortgage rate fell to 3.69%, according to Mortgage News Daily. So, what does that mean for you?
Well, if you already own a home and you have a higher interest rate on your current mortgage, right now would be a great time to refinance for a lower rate. Typically, if you can save two percentage points or more, refinancing is a good deal. If you are in the market for a new house, getting a low interest rate should always be a top priority — and now is your time.
Low interest rates aren’t the only good news for the housing market. In addition to the dropping rates, prices rose by 3.7% nationally in November. This makes for a great investment opportunity if you find the right property — especially for people who want to flip houses. You can buy a home, get a mortgage with a low-interest rate (so your carrying costs each month aren’t outrageous), remodel and then flip it, hopefully for a nice profit.
The downside is, that if you’re looking for a brand new forever home, you’ll probably pay a bit more. Sure, there are a lot of great deals out there but prices are undoubtedly higher. But, at least you’ll have a great interest rate.
~Here’s to Your Financial Health!
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