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 respayment 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.
Read about Peter Martinez at Studioathome
Read about Peter Martinez at Blogspirit
Read about Peter Martinez at Alkablog
Read about Peter Martinez at Blogster
Read about Peter Martinez at Livejournal
Read about Peter Martinez at Grab
Read about Peter Martinez at Voyblogs
Read about Peter Martinez at Tripod Blog
Read about Peter Martinez at Aol
Read about Peter Martinez at Flickr
Read about Peter Martinez at Ign
Read about Peter Martinez at Greatestjournal
Read about Peter Martinez at Iziblog
Read about Peter Martinez at Naymz
Read about Peter Martinez at Multiply
Read about Peter Martinez at Blogsome
Read about Peter Martinez at Linkedin
Read about Peter Martinez at Yahoo 360
Read about Peter Martinez at Geocities
Read about Peter Martinez at Blog.co.uk
Read about Peter Martinez at Wetpaint
Read about Peter Martinez at Ebloggy
Read about Peter Martinez at Blogs.ie
Read about Peter Martinez at Myweblog
Read about Peter Martinez at TheBlog
Read about Peter Martinez at Bahraichblogs
Read about Peter Martinez at Blog
Read about Peter Martinez at Bebo
Read about Peter Martinez at Digg
Read about Peter Martinez at Myspace
Read about Peter Martinez at Squidoo
Read about Peter Martinez at Claimid
Read about Peter Martinez at Greenpeace
Read about Peter Martinez at Ning
Read about Peter Martinez at Familytimes
Read about Peter Martinez at Xanga
Read about Peter Martinez at Last.fm
Read about Peter Martinez at Xing
Read about Peter Martinez at Blogghost
Read about Peter Martinez at Webshots
Read about Peter Martinez at Typekey
Read about Peter Martinez at Soulcast
Read about Peter Martinez at Teenblog
Read about Peter Martinez at Bloggerteam
Read about Peter Martinez at Friendster
Read about Peter Martinez at Easyjournal
Read about Peter Martinez at Sampasite
Read about Peter Martinez at Journalhome
Read about Peter Martinez at Eblogs
Read about Peter Martinez at Bloglines
Read about Peter Martinez at Vox
Read about Peter Martinez at Outblogger
Read about Peter Martinez at Freewebs
Read about Peter Martinez at Clearblogs
Read about Peter Martinez at Squarespace
Read about Peter Martinez at Opera
Read about Peter Martinez at Netscape
Read about Peter Martinez at 20six.co.uk
Read about Peter Martinez at Blogyx
Read about Peter Martinez at Nireblog
Read about Peter Martinez at Blogbeee
Read about Peter Martinez at Wordpress
Read about Peter Martinez at Journalhome
Read about Peter Martinez at Egoweblog
Read about Peter Martinez at Blog-city
Read about Peter Martinez at Blogfusion