Record Low Interest Rates: How Low Will They GO

January 05, 2012

Record Low Interest Rates: How Low Will They GO

This New Year may just be the one that you purchase your new home! If your resolutions are to buy, refinance, or explore your real estate options, the time is ideal. The Federal Reserve has committed to keep long-term interest rates low through next year.

“Rates are very much at the bottom,” Mr. Nothaft said. But, he added, they may start inching up in the second half of the year. “If you’re planning to refinance, do it sooner rather than later.”

In order to maximize your budget:

BEFORE you begin to look for a home, find out how much money you can afford to borrow and what you will be able to do in the next 3-6 months to improve your creditworthiness. If your score is below 700, your mortgage interest rate could be a quarter to a half percentage point higher than for those with stronger scores.
Order copies of your credit reports. Review them for inaccuracies and disputes. Fix any issues that may arise.
DO NOT close credit accounts. This may damage your credit score as much as 60 points!
Once your credit score is established, do research on a mortgage banker and/or broker who you will want to work with. Visit websites, ask friends, and then arrange a meeting to see who best fits what you are looking for! For a jump start, visit us atBozemanMontanaRealEstate.net!

Source: http://www.nytimes.com/2012/01/01/realestate/mortgages-how-to-get-a-rock-bottom-rate.html?_r=1&ref=realestate