The Federal Reserve (EDF) has lowered the interest rate to a percentage never seen before. Currently this rate is paying an interest of 0.25%. This measure is taken by the EDF to increase consumption and therefore try to help the economy. EDF is especially taking these measures to help homeowners be able to maintain their home and not have to declare bankruptcy or be seized. Mortgage loans, given at these rates, are being offered at historical values. According to USA TODAY, I report yesterday that mortgage loans had not reached this value since the 1960s here in the United States. If you are thinking of buying your house or modifying your mortgage now is the right time to do so; as long as you take these tips into account.
Remember that this was what led us to this crisis
A few years ago, EDF did the same to be able to promote the economy. EDF reduced the main interest rate to encourage economic flow but many people had neither the education nor the resources to buy a house. Although these rates are very attractive you should first visit a financial advisor so that he can educate you about your economic situation and what you can really allow (pay).
Improve your credit before taking the step
Before applying for a mortgage or a modification make sure that your credit is in an optimal condition. You can do this by paying your credit cards completely, paying the bills you have in collection and disputing any erroneous information that is in your credit.
Use the internet for your research
The internet has many resources to do research on the interest rates prevailing in your city and at the same time information about mortgages, houses, etc. Always keep in mind that there is very good information on the internet but also very bad. Question everything you read. You can use the internet to also choose your real estate agent and your financial institution.
Fixed, not adjustable
Adjustable rate mortgages (ARMs) sound like a very good idea for introductory rates where you can pay up to 2% less than the real one; but when this adjustment period you could end up with a mortgage that you cannot pay. If you choose a fixed mortgage you will have an amount that will not change for the life of the loan.