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Take advantage of cheap money

Gay San Diego

With mortgage interest rates at an historic low, money is now cheap to borrow and it is an incredible time to consider taking advantage of this opportunity. There are several different ways to use this opportunity to your own advantage and listed below are a few ideas for you to consider.

If you do not own your own home, you really need to think of buying one. In addition to the mortgage rates being so low, housing prices have also dropped thirty to sixty percent all over San Diego County and beyond. In many cases you can buy a place for around what you are paying in rent. Plus, there are so many other benefits to you as a homeowner; benefits like deducting the interest of your mortgage payments when you do your taxes. When you rent a home or an apartment, you will never see a return on the money you pay your landlord and you are subject to rent increases and eviction. Also, when you own your own home you can make nice improvements that you would typically not do when renting. Now that it is a buyer’s market and interest rates are so low, it is truly a great time for you to buy a property. Whether it is a small condo or a spacious home, you will benefit from being a homeowner. But if you already own a home, you may want to consider refinancing.

Refinancing is another way to take advantage of today’s cheap money. It can benefit you greatly if you own your home and your current interest rate is higher than today’s mortgage rates. You owe it to yourself to speak to a lender or mortgage broker to find out how much you could save each month. In many cases, the savings can be significant. Interest rates have been around 4 percent and even less. There are many different loan programs that all lenders offer, so you want to select one that best meets your needs. You may even want to get a 15-year loan instead of the traditional 30-year loan, so you can pay it off faster. But whatever refinancing loan program you select, the bottom line is to refinance to save a significant amount of money. Also please keep in mind that when you refinance, you do not want to borrow more money and make your current loan balance higher, unless it is necessary or it makes good financial sense. This is how many people have over-extended themselves and have gotten heavily into debt. You also want to keep in mind the goal of eventually paying off your mortgage as part of your future retirement plan.

If you already own your home and you already have a great interest rate on the loan, you can take advantage of today’s low mortgage interest rates by buying an investment property. Real estate has always been one of the best investments throughout history and throughout the world. So consider expanding your financial portfolio to include income property. Your mortgage interest rate will be a little higher for a non-owner occupied investment property, but because the mortgage rates are so low, it is still a very prudent thing to do. You don’t ever want to over-extend yourself financially, but if you are able to purchase property for income, you can be setting yourself up for a secure financial future. Some of the most successful and financially independent people in the world have gained their wealth through real estate. So do not let the recent downturn in the real estate market scare you away from buying property.

Now is a wonderful time to take advantage of the low mortgage interest rates and the low housing prices. So use this window of opportunity to refinance or buy property. It will benefit you now and in the future!

Trent St. Louis is a licensed Real Estate Agent and a member of the National, California and San Diego Association of Realtors. You can reach Trent at SpecialAgentTrent@gmail.com or at his office in Hillcrest, 619-300-1621. The Metropolitan Group (CADRE#01273643).

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Posted by on Feb 16, 2012. Filed under Bottom Highlights. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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