HomeVestors Knows That Mortgage Interest Rates Are Beneficial To Investors


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Investors who want to take advantage of the current interest rates need to purchase a property before the Fed reduces their QE program. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that mortgage interest rates have increased a tad from 3.95% to 4.05%.  Expect that mortgage interest rates will remain around this mark for the remainder of the year.  Investors need to act quickly if they want to take advantage of the “cheap money” that the Fed is providing them.

As mortgage interest rates teeter around the 4% rate, investors who are planning on using lender financing to purchase their investment have to be smiling.  This is only likely to be the case for the next couple of months and those who are able to purchase a property by using lender financing should do so relatively quickly.

As soon as the Fed switches leadership, expect that the QE program might be handled differently.  If Janet Yellen, the candidate expected to lead the Fed in 2014 and beyond becomes the new face of the Fed, expect that the QE program will begin to be scaled back.  When this happens, the interest rates are bound to push up and force investors to reconsider their source of financing.

Even if Yellen decides to continue to QE program in its entirety, at some point this bond-buying program has to end.  Investors will likely not have another shot at 4% mortgage interest rates in the next couple of years, making it crucial that they act now in order to save a great deal of money over the course of their investment.

One side effect that an increase in mortgage interest rates will have on investors is that they will be likely able to purchase property for less, as property values are expect to drop if interest rates push up past 5%.  This is due to a lower level of competition among buyers because most won’t be able to afford the inflated mortgage payment.

Investors who are paying cash for properties can take advantage of an increase in mortgage interest rates that are likely to allow them to secure better deals.  These investors should wait until the market favors them and begin buying up properties when interest rates are high, as they are likely to be able to make their own terms and conditions when dealing with buyers.

Investors who want to take advantage of the current mortgage interest rates need to purchase a property in the near future.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

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