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Watching the <a href=http://www.current-mortgage-rate.com>curent mortgage rate</a> is one of the most important steps in determining when and how to buy a house. I know, I know, most of you are more concerned about how many bedrooms, how many baths, and whether or not their is a screened in porch. Sure, these amenities will make your home life a better experience, but your financial situation is extremely important too.
It may surprise you, but the cost only a fraction of a percentage point on your interest rate for your mortgage loan can cost you tens of thousands in the long run. While your month to month bills may seem only marginally higher, in the long run you could have purchased a car, a boat, or even that screened in porch you have been coveting.
So, how do you know whether or not now is a good time to buy? Here are a few indicators:
(1) Follow the financial news. Look around to determine if the Fed (Federal Reserve Board) is going to be hiking interest rates to stifle inflation. If they are, now is the time to make a move. You need to lock in as early as possible to ensure that your rates sound the same. If their is good inflationary news, you may choose to wait a little longer before locking in your rate.
(2) Follow the real estate news. How is the housing market going? If it is in a boom, you can bet that lenders will find unique ways to get you a great rate on your house. If times are slow, and they have to choose a select set of home buyers, it may not be the best time to find the <a href=”http://www.current-mortgage-rate.com”>mortgage rate</a> you are looking for.<br><br>
(3) Follow your gut. I know this sounds a little cheesy, but the truth is you know when you are ready to buy a house. While it is best to lock in at a good rate, it is worse to buy just because the rate is good. Be patient, be persistent, and be ready to act.