Why low interest rates mean it’s time to buy
- November 30, 2012
- Ayda Shabanzadeh
Following the GFC interest rates have been cut around the world and while they are down the canny individual will make the most of them. Here are a few ways you can use these low rates to your advantage.
First up, the most obvious move is to buy a home. Rates on long-term fixed-rate mortgages are at their lowest in decades and the housing market hasn’t returned to its pre-GFC highs. If you have been putting off your decision to buy a house, now we are in the perfect storm of low interest rates and low home prices, so don’t delay any longer.
If you already own your own home then another way of making the most of the low interest rates is by refinancing. If you want to get out from under an adjustable-rate mortgage — and you aren’t upside down on the loan — now is a good time to switch to a fixed-rate mortgage. It will only take you a few minutes using an online mortgage calculater to work out what you could be saving. You could also look into refinancing your 30-year mortgage into a 15-year loan so you don’t inadvertently add many years of interest payments to your mortgage. Shortening your mortgage is the best way to save in the long run.