Economic forces may work against home buyers who wait too long to take advantage of the current market conditions. Acquiring a low-rate mortgage loan could be the difference between qualifying for an affordable monthly payment and being disqualified for a home loan, due to mortgage interest rates that are rising in 2018. Perennial Funding offers attractive mortgage rates for first time home buyers and for previous buyers, as well.
Historically Low Mortgage Interest Rates
Contrary to popular beliefs, mortgage interest rates are still at historically low levels. Home buyers and homeowners who were seeking to refinance faced some of the highest mortgage rates on record during the 1980s.
According to information from the Fannie Mae website, borrowing conditions were brutal from 1979 through 1990, as annual mortgage interest rates maintained double-digit averages. However, since 2010, the annual mortgage interest rates have been less than five percent.
During the past five years, some first time home buyers were able to secure mortgage interest rates that were under three and one-half percent. Unfortunately, mortgage rates are creeping up. Data from February 2018 reflects an increase for mortgage interest rates that exceed four percent.
While higher interest rates are known to increase a borrower’s monthly mortgage payment, the loan amount that a home buyer might qualify to receive might be lower, too. Having a conversation with a licensed mortgage professional is a great way to inquire about long-term financing options.
Inflationary pressure is a major concern for the Federal Reserve. In an effort to maintain the ideal economic balance, the Federal Reserve is projected to continuously raise or to maintain the existing rates during its next few meetings. Therefore, now is good time to apply for a mortgage loan, as rates are likely to become worse before getting better.
A first time home buyer may be able to obtain financing via a low-down payment loan program through the Federal Housing Administration. Working with a knowledgeable lending expert who is very resourceful could help a prospective buyer learn about funding opportunities for a new home.
As a reputable mortgage company, Perennial Funding offers a wide variety of loan programs for borrowers who are in the market to buy a home or to refinance. We are licensed to offer mortgage loans in Delaware, Florida, Maryland, New Jersey, Pennsylvania and Virginia.
Contact us today at (888) 826-4856 to obtain more information about attractive mortgage loans for first time home buyers.