As mortgage rates continue to rise, people yearning for their dream home take all the time to sit down and do the math to know how much they could afford. Finding the right home depends largely on one’s financial capacity. This is why mortgage refinancing is an ideal way to go, especially for those who are in the lower income bracket.
Good thing, many home finance companies are available to help, especially those in need of advice on whether they should refinance their mortgage or consider other options. Altius Mortgage Group further noted that interest and mortgage rates are key factors to consider when deciding on the appropriate settlement.
Deciding on these matters can be challenging, especially after mortgage financier Freddie Mac revealed the new mortgage rates in January 2018. The fixed-rate for 30-year and 15-year mortgages has increased to 4.15% and 3.62% respectively. The same holds true for five-year adjustable rate mortgages, climbing up to 3.52% from 3.46%. This constant increase may create problems for aspiring homeowners.
Cash infusion from government needed
Aware of the predicament, mortgage financiers Fannie Mae and Freddie Mac have requested for aid in the form of cash infusions from the government. Unfortunately, there are complications associated with it, including risks traced back to taxpayers, as Zillow Research reported.
The need to reform the current setup is up for a debate, which includes proposed changes to address affordable housing goals. What’s suggested was a fee-based program, although there are disparities expected should a shift ensue.
Affordable housing is seen as a relatively small part of a government-sponsored enterprise mandate. Moreover, the current setup allegedly holds more potential although that may exclude the low-income earners. It’s easy to see the fine line drawn with financially capable individuals who are hardly affected.
Educating and finding a workaround
With the issue expected to take time to resolve, the best thing for any consumer to do is to seek aid from counselors. Many companies are ready to assist people from any income bracket, advising them of the right home to target and refinancing options.
Counselors can help clients address foreclosure prevention, home buying issues, and reverse mortgage. With financial literacy counseling, people are guided on how to handle their home mortgage problems and improve their credit score.
Mortgage rates are expected to stay in their course, and will continue to rise. With rising costs and inflation, the best recourse is to sit down with experts and skim through your options. It’s a stressful reality for homeowners, but it’s something you need to face and at the soonest.