Have you been watching the home mortgage rates and noticing that they move up and down constantly? Maybe you have even been watching the overall trends to see if they are better or worse now than they were last year. If you spend even a few months watching them, you are sure to notice that there is change, and that leads you to one important question: Will your rates ever change after you buy a house? If you get a good rate now, can you embrace it and know that you will have the same rate in ten years, or are you at the mercy of the market?
You will be glad to know that you can embrace home loans rates that you get, knowing that you will still have them in the future. The rates are locked in as soon as you buy the house. They could double in the next year – not that such a massive change is very likely – and it would not impact you in the slightest. You get to keep paying the same amount. If they go down and you want to refinance to get the lower rates, you are certainly free to do so, but you will never be forced into a higher rate than the one that you originally agreed to pay.
The beauty of this is that your mortgage payments should stay the same. You can really create a solid budget without wondering how much you are going to have to pay from one year to the next. If you see low rates, it is a great time to buy a house. If the market moves up and homes get to be more expensive, you could love your low rates twice as much in the years to come, when they are impossible to find again.
photo credit: freshome.com