HomeVestors Knows That The Mortgage Interest Rate Is Still Affordable


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Investors who are thinking about using lender financing to purchase an investment should do so while the mortgage interest rate is still below 5%. 

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 the mortgage interest rate is still at an affordable rate, 4.39%.  Expect that this rate is going to increase slowly over the next couple of years.  Those investors who have been thinking about securing lender financing to purchase an investment property should consider doing so in the near future.

While the mortgage interest rate at 4.39% seems high in comparison to what it was a year ago, it is still quite low based on historical rates.  Those who purchase a property in the beginning of this year should be able to secure a mortgage interest rate under 5%, but those who are considering waiting until the summer to purchase an investment property will likely be faced with mortgage interest rates that are above 5%.

Investors who are forced to lend money from the bank will have to pay the going mortgage interest rate no matter what it is.  This is why investors who have a property in mind should move forward swiftly and close on it.  Investors who are waiting around for a better mortgage interest rate will not likely to receive it, as the Fed has recently reduced their bond-buying program.  The effects of this bond-buying program kept mortgage interest rates affordable through the QE program.  The era of easy money is coming to a close and investors who still want to capitalize on it need to secure a mortgage now.

Investors who are thinking about purchasing an investment property in the next couple of years should realize that the mortgage interest rate could creep up to 7% or more, effectively cutting into an investor’s profits.  Those who have the option to purchase an investment now should consider this to be their best option.

If mortgage interest rates do end up moving up to 7%, expect that real estate investors will scale back on their purchases and sit on their laurels.  Those who have the liquid capital to make purchases at that time will likely be able to capitalize to the fullest degree, as buyers of all types will be sitting by the sidelines.  This will result in significant drops in property value and the ball will officially bounce into a buyer’s court.

Those investors who take advantage of the current mortgage interest rate can capitalize on their investment to the greatest degree.

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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