Chicago, IL (PRWEB) February 09, 2014
Shorter term home loans are increasing in popularity. For individuals wealthy enough to afford a higher mortgage payment, the savings on a shorter term home loan can be tens of thousands of dollar compared to a 30-year fixed mortgage. Peoples Home Equity believes it will see even more 15-year loan applications if mortgage rates continue their rise from Fed tapering.
Peoples Home Equity believes individuals have been attractive to this loan option based on the positive trend in mortgage rates. Indeed this may be true because the truth is most Americans choose this type of loan option after they refinance! Many home buyers have become alert of the mortgage rate situation and want to hedge the risk of paying higher interest payments over time by refinancing.
Peoples Home Equity does not find a 15-year home loan as necessary for all Americans. In fact, the lender believes most applicants should apply for a 30-year mortgage by getting fixed into a low rate now. However, for those that can comfortably afford a 15-year home loan, the lender encourages the applicants.
According to MortgageNewsDaily.com, the rate on a 15-year fixed mortgage was 3.38% on Friday, February 7th. This rate is currently better than nearly a month ago (before equity markets fell) when 15-year fixed rates were 3.53% on January 10th. The Federal Reserve has begun tapering its long stand asset repurchase program (QE3). The Fed’s intention of tapering QE3 is to raise interest rates. The only reason why interest rates have not climbed already is due to economic headlines highlighting weakening growth in emerging markets and U.S. equities. Peoples Home Equity fully expects interest rates to rise again with prominence once emerging market data points recover.
For readers who have been waiting to apply for a home now, now is a good to seize the opportunity on the recent mortgage rates decline. Moreover, for those that can afford higher mortgage payments a 15-year loan is even more attractive at current rates.
Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.