Long term rates head south
Posted by Nainukumar on Feb 16th, 2006
2006
Feb 16
There is reason to cheer for those who are facing spiralling growth in their adjustable rate mortgages, long term rates have started to soften and are down to 6.10%, although still higher from the previous year’s levels.
This is especially favourable for those who had taken interest only loans, and the payouts for which are about to spiral. They can refinance their existing mortgages in favour of fixed rate loans and hedge their position against future fluctuations.
It may also be an appropriate time for them to cash-out on home equity and utilize the excess amount to either indulge in home improvement or for other purposes.
To read more on interest rates click here.