What interest rate you get on your mortgage should not be the “final answer” in your Alaska real estate buying decision.
As a colleague of mine recently put it, “Little Piggy’s are fat and happy, but the BIG HOGS go to slaughter.” If you are waiting around for the “FEDS” to lower the interest rate to 4%, you just missed the deal of the year to the guy who was happy with 5%.
I do not pretend to be the expert in the field of predicting interest rates, but having over 30 years of mortgage business under my belt probably makes me a little more opinionated about this subject than most.
I have to admit that I am just as price conscience as the next guy. However, I have never let it be the end all to my decision making in any of the major purchases my family has made in the past 30 years. We have bought at the top of the market, and we have bought at the bottom of the market.
The interest rates were at 14.5% in 1980 when we bought our first home, but that didn’t stop us from buying the home we wanted. My parents thought we were CRAZY for paying that high of an interest rate, but we needed that home for our family, and it served us well. Had we waited for the rates to drop, we would have paid $20,000.00 more for our home, and the monthly payment would have been higher. I am so glad we didn’t wait.
Another mistake people in the home buying process do is shop for their mortgage based upon the lowest interest rate they locate over the phone, or Internet. They get on the phone and start calling around. What’s your 30 year rate? It’s like….you have got to be kidding me, right? What most borrowers don’t realize is that rates may change several times a day according to industry changes that impact pricing in the rate market.
How about shopping for a lender that will take the time to review your overall financial picture, give you options on various scenario’s that could save you thousands of dollars more than what an 1/8th of 1% can do for you over 30 years. It is not one size fits all anymore.
Take the time to schedule an appointment with a professional mortgage lender that:
- Will Return Your Phone Calls.
- Knows how to help you improve your credit scores.
- Knows what the interest rates are based on. (no it is not prime or the treasury bill)
- Offers you more than just one loan option.
- Always provides you a written cost estimate of your fees.
- Can close your deal on time at the price they quoted. (of course you usually don’t find this out until the end……..)
So, for the real question: “Are Mortgage Interest Rates Going Down In Alaska?
I believe 2009 could very well mark the lowest rates that we will see for the rest of our lives. Just think about that for a moment.
I expect interest rates to stay in a range of 4.5 – 5.5%, with the potential to see rates moving toward the higher part of the range later in the year.
Now that you have the answer you were looking for…. Don’t wait. Go buy that home you want, and be sure to call me to finance it. I pride myself in being, “More than an Interest Rate”……
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Jackie Toppin
Mortgage Banker
Mortgage License #100110
Preferred Mortgage
Branch of Residential Mortgage
Mortgage License 100083
3111 “C” Street, Suite 325 Anchorage, AK, 99503 |
Work: 907-261-7655
Fax: 907-261-7543
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Taking The Time, Making A Difference
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