Homebuyer Heaven Can?t Possibly Last

With interest rates at record lows over the past year, there's really only one way for them to go, the only question is when. Most experts agree that rates will remain fairly stable in the short term, at least until the end of the year, and some believe they will even decrease slightly. However, the prospect of a sharp increase in 2005, continuing into the following year will have many mortgagees feeling uncomfortable.

Those most at risk when rates begin to rise again will be borrowers who have been over eager to buy in to the mortgage market while rates were low, without taking the time to secure the best possible deal, or to consider their position in the long term. The low interest rate environment has been ideal for aggressive, unscrupulous lenders to encourage customers to borrow more than they need, or agree to repayment plans they can't realistically afford, particularly when rates begin to rise again. Being in a hurry has also meant many people have been less careful about checking terms and conditions of the loans they are agreeing to. To make matters worse, many homebuyers have been swayed by low interest rates into paying too high a price for their property.

Some financial experts believe interest rates will remain low long enough for an adjustable rate mortgage to continue to be an attractive option, but borrowers will need to be quick. With rates set to rise, an ARM would seem an irrational choice, but this type of loan is still surprisingly popular. Overall rates for this type of loan are generally lower than rates for fixed term mortgages, and for those planning to pay off the loan in a reasonably short time, the remaining period of very low interest rates will still be an advantage. Many experts also believe it's still not too late to take advantage of low rates to refinance a home loan package. The key for borrowers is to keep their cool when negotiating a deal, read the fine print, and think about the long term picture.

David Cannell is a freelance writer and university educator and also the owner of http://www.property-raider.com

---

When Showing Your Home

Here below are some of the reasons why buyers may... Read More

Purchasing Land: What To Look For

It doesn't take long to realize that finding the right... Read More

Interior Design Secrets for Selling Houses

New concepts in Interior Design Psychology are helping home sellers... Read More

Attention To Details Helps Homeowners Sell Fast In A Buyers Market

Your boss has just given you the career opportunity of... Read More

How to Get Financing after Filing Bankruptcy

If you're thinking about buying a home but have declared... Read More

Title Insurance ? Examples of Problems and Advice

What is title insurance and why should any buyer get... Read More

Selling Your Home - A FSBOs Guide to Keeping It Safe

Sellers need to keep their safety in mind when prospecting... Read More

Real Estate Investing Produces Extraordinary Profits

Imagine making $5000 a year from real estate investing without... Read More

Real Estate Appraisal - Do It Yourself

For single family homes, there are two basic methods used... Read More

Should You Buy Real Estate Now

I have been seeing the market on fire for a... Read More

Financing Houses

What Real Estate Lenders Look ForLenders control many programs --... Read More

First-time Home Buyers - 100% Home Loans

There is an increasing trend in South Africa that is... Read More

How To Spot A Good Buy

Beauty is in the eye of the beholder, particularly when... Read More

Use Targeted Decorating To Get A Higher Price For Your House

This article will show you how to sell your home... Read More

Budgeting Your Log Home: Where Do You Start?

The Log home industry has matured these last many years,... Read More

Choosing a Reputable Real Estate Appraiser

When you are considering purchasing a property; either for investment... Read More

Why Commercial Real Estate is the Hottest Retirement Asset

For small business owners, commercial real estate investment is the... Read More

A Real Estate Primer

There are a great many books and web sites devoted... Read More

Real Estate Investments

Real estate investments come through a variety of different options.... Read More

Property Investment - What Future For the Biggest Bubble of All Time?

The Economist magazine published a special report in this months... Read More

How to Afford Your Dream Home

Is it your dream to one day own a holiday... Read More

Home Equity ? Don?t Spend It on Risky Investments

The housing market has exploded in the last five years,... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

How To Go About Selling Your Home On Your Own

In days of booming real estate, you would think that... Read More

Big Discounts With Property Investment Clubs?

A stagnant stock market, low interest rates and booming property... Read More

How to Show & Sell Your California Home

Seller's Showing Instructions1. When the agent arrives with the potential... Read More

Should You Use a Property Management Company or Manage Your Real Estate Investment in Florida?

When considering investment properties, first of all, it must be... Read More

Buying A Home ? Zoning and Architectural Review Board Restrictions

When you buy a home, you need to be aware... Read More

The Key to Real Estate Investing Success Revealed!

How did you get into real estate investing? Did you... Read More

What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language

Financial literacy is the means of empowering consumers to make... Read More

Foreclosure

Foreclosure under a mortgage requires a court ordered sale conducted... Read More

The UK has Gone Property TV Show Crazy!

The UK has gone property TV crazy. There are now... Read More

A Possible Bargain: Foreclosed Properties

In the superheated San Francisco Bay Area property market, foreclosed... Read More