If you have been down in the dumps because of the economic recession and your mortgage loan which is giving you major problems, then you should realize first of all, that you’re not alone. Hundreds of Americans are in the same boat as you are in – stuck with a high interest mortgage, and struggling to make the monthly payments. However, did you know that through the efforts of the government and several civic and business groups, there have been new developments, and you can now apply for a Phoenix refinance and avail of these benefits.
The most advantageous of all the new developments is the new interest rate. From a high rate of 6.5% in 2005 to the current rate of 4.375%, homeowners can actually save more than 50% on their monthly mortgage bills.
This new interest rate was practically cut down to the bare bones because of the need to stabilize the economy and avoid further foreclosures. It was the government’s answer to the clamor of homeowners for some form of relief.
With this new interest rate, expect there to be far less foreclosures in the Phoenix-Metro area. This means that if this happens, then the economy of the city, and that of the country, will start to recover from the recession (or at least we hope!). Obviously, people can pay their mortgages much easier when there is more money in circulation.
The problem that came with the recession is that investments practically came to a standstill, and there was very little buying activities. This meant less income, and less business.
The new interest rate hopefully will change all that. With a new refinance, you not only get a personal benefit, you are also helping your country get back on track. If you want, you can also take this interest rate a notch better. This can be done by arranging with your broker or lender a limited Adjustable Rate Mortgage (ARM) term which will shift to a fixed loan term after.
This will allow you to enjoy the current interest rate while it lasts, and then after a time, like a 2 year period, your loan term on the interest rate will shift to a fixed rate. With this kind of arrangement, you are maximizing your loan so that you enjoy the low interest rate for as long as possible. If you need to know more about the fine print on the low interest rate and refinancing in Phoenix, check out mortgagesandhomeloans.net. This has a veritable treasure trove of information that you will benefit from reading.
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Hopefully the lower interest rates will increase home ownership and turn the trend around. Between this and the tax credit incentive, it makes for two excellent choices for consumers to now afford their homes.
Adam Alfia´s last blog ..30 Inspiring & Creative Examples of Colorful Pattern Designs
Interesting info! Where can I get more info regarding the tax credit incentive? Thanks in advance!
Buenos Aires real estate´s last blog ..Punta del Este – Seaside Luxury Property
Defnitely think homebuyers should take advantage of these rates while they last..because they wont and cant. Inflation will be hitting these rates and getting rid of the best homebuying opportunity in years. Although prices have decreased the home affordability will still get hit because of higher rates. Get in now! Sacramento Property management
Ryan Jones´s last blog ..Sacramento Property Management Report- Market Update Sacramento Office