While parts of the country are still reeling from the economic crisis, St. Louis has been on the road to recovery.
With the recent rise in downtown construction projects came a surge in the economy that puts St. Louis residents at an advantage over other cities.
Last week, the Federal Reserve, which is a key player in determining mortgage rates, announced that starting in April it will be reducing the amount of money spent on treasury securities. This will directly affect the current interest rates by driving them up again.
There is no way to tell exactly when or by how much mortgage rates are going to be affected by this move, but you can bet it is going to be sooner rather than later. Stop dragging your feet hoping that rates fall below 4% and get to a reputable mortgage broker now to secure yourself a rate at the current 4.3%.
If you think 4.3% is too high, think again. You are forgetting the days of yore, when an average mortgage rate was around 8.5%. That’s right. The true 40 year average for interest on a 30 year fixed rate mortgage is 8.55 according to Freddie Mac. That’s almost double what it is now. So when you look at things that way, you realize what is being offered out there now is pretty cheap. Take advantage of that now before the Federal Reserve’s changes start to make an impact.
But what if I haven’t picked out a new house yet? With the right lender, that won’t make a difference. If banks have learned anything from past mistakes, it is that the value of a home has very little to do with a mortgage payment. What matters more is the person whose name is on that loan. With a lender like Better Rate Mortgage, you can get approved for a mortgage before you find the house.
To Be Determined Mortgage
That actually makes more sense when you give it some thought. How was it that we used to go house hunting with no idea of how much house we could afford? With a plan like the TBD Mortgage Approval Program any obstacles that could stand in the way of a mortgage approval can be addressed before you fall in love with a home. No disappointments down the road when your loan application isn’t approved.
That’s not even the best part. Once you are approved through the TBD Mortgage Approval Program you have six months to find the house. That should give you plenty of time to look around and still take advantage of today’s interest rates before they go up from the Federal Reserves news.
St. Louis residents should be taking advantage of the cities recent improvements in its economy as well as the low interest rates being offered to jump on the home buying band wagon. Let a reputable lender like Better Rate Mortgage take you under their wing and secure you that great rate now so you can benefit from low monthly mortgage payments later.
photo credit via Flickr.com: shock264