In a recent news release, CMM claimed that 30 years fixed rates have been an all time low. According to the report, the 30 year rates have been low for two consecutive weeks ending on February 9 at an average of 3.87%. This is a shocking revelation given the fact that last year same time the interest rates were recorded at 5.05%. Why has there been this sudden reduction in rates of home mortgage? Is it the same case in all other forms of home mortgage? Well, a deviation has certainly been noticed in the interest rates of 15 year fixed mortgages.
According to the study. the average of 15 year interest rates has gone up from 3.14% in the previous week to 3.16%. As is evident these numbers are no better than those recorded for 30 year fixed mortgage rates. However, an increase is surely an indicator of the market situation. But returning to the overall decrease of mortgage rates one needs to carefully go back to the real estate scenario in the erstwhile -80s. One main reason that accounts for the extremely low rates recorded recently is the security offered by home mortgages. Evidently, lenders are more sure of receiving loan paybacks in cases of home mortgages than through home equity loans. This sense of added security has fueled lenders to give away loans at extremely low and hence, lucrative mortgage rates.
This has further increased the chances of business for these lenders as debtors are readily turning to use the option of putting their home for mortgage in order to improve the financial back-up for their business. Added to this is the fact that tax deductibles have been removed from almost every other type of loan system except, home mortgages. According to the judiciary change that was exercised in mid-1980s, tax deductibles were removed from auto and even home equity loans. But it has been retained for home mortgages, allowing a tax payer to avail lower interest rates.
Thus, if you are planning to mortgage your home, make sure you are sure of what you receive when signing the deal. Remember, the home mortgage scenario has become bright for homeowners, and this might just be the chance you were looking to gain financial stability. By using these low mortgage rates, Cocoa area homeowners will be able to pay off many other debts and still keep strong at their business, using the loan provided at very low interest rates.
Mortgage Rates Cocoa – When looking for the lowest home mortgage rates, Cocoa area homeowners should go for the deals offered by Community Credit Union Florida.