Mortgage Rates Holding Pretty Steady

The most recent Freddy Mac survey indicates that mortgage rates are virtually unchanged from the end of 2005 survey. This is good news for those who are still shopping for mortgages: your options are still open!

Keep in mind that the long term fixed rates are getting more cost effective, given the fact that your payments are "locked in". You pay a bit more for security, but you are getting a mortgage that you can plan for. If you are a bigger risk taker, the current ARM offerings will save you a bit on payments, but you're gambling on the rates. While it looks like the Federal Reserve will cease in its increases in the prime interest rate, there's no guarantee that the rates will fall. For that matter, other factors beyond the Fed can affect rates. It is a gamble.

My only recommendation is that if you get a long term fixed rate mortgage, that you also negotiate very good options for additional payments. After all, if you are locked into a 30 year mortgage, you will pay a lot of interest over its lifetime. Any additional payments you can make directly against the principal of your mortgage will save you a LOT of money. And the sooner you are mortgage free, the sooner that monthly payment is in your pocket -- and not your lenders.

Mortgage free sooner should be everyone's goal.


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