If rates rise to 5 percent or more, wouldn’t it be great to find a seller who could pass along a 3.35 percent mortgage when you buy their home?
Any plans to do away with the mortgage interest deduction and other tax breaks some homeowners enjoy aren’t likely to pass Congress in the next year.
New mortgage rules are going into effect Jan. 10 to protect homeowners and investors from the kinds of risky mortgages that were sold during the recent real estate bubble and led so many people into foreclosure.
Mortgage interest rates are probably headed up. The better the economy gets, the more apt they are to rise. Experts predict rates will hit 5 percent in 2014 and 5.3 percent in 2015.
There’s a catch. After those first five years, things change. The size of your monthly payment can swell or shrink as interest rates rise and fall.
You may have missed the era of bargain-basement home prices, but you can make up for some of that with comparison shopping and aggressive bargaining with lenders, brokers and builders to get incentives they are offering now.
This simple step is essential for getting you the best possible interest rate on your home loan.