Higher Interest Rates and Potential Homeowners

 

With national mortgage rates reaching 4% recently, the refinancing boom of the past few years is about to be over. Big banks have done very well thanks to the huge number of people who refinanced their mortgage. Higher interest rates means less refinancing and the question is how will banks respond to the drop in revenue? Many banks opened up whole new offices to handle the number of refinancing mortgages, but those offices won’t have much to do with interest rates where they are. If rates remain at 4% and above, some banks may have to lay off the extra staff to save some money.

Another interesting side effect of higher interest rates is that many lenders will open up to a wide base of potential homeowners. Approving mortgages to those who don’t have the credit is what led to the housing bubble financial crisis in the first place, but don’t expect banks to lower their standards to 2007 –like levels. Approving mortgages for people who are close to the required credit isn’t terribly risky and can actually help improve the housing market and boost the economy.

Ace Mortgage Loan Corporation is a full service lending company serving the people of Coral Springs, Boca Raton, Delray Beach, Pompano Beach, Coconut Creek and Davie. Before you start the process of buying a new home or refinancing a current mortgage, contact the most reputable lender in South Florida, Ace Mortgage Loan Corporation. With a team of mortgage loan specialists on hand for assistance, Ace Mortgage Loan Corporation can help you traverse the often confusing housing market.

Whether you are looking for a standard fixed-rate mortgage from Fannie Mae or Freddie Mac or you’re a veteran looking to secure a VA loan, Ace Mortgage Loan Corporation is here to help. Stop by our office at 10181 W. Sample Road in Coral Springs, FL or calling (954) 777-4774. We are available by phone seven days a week!

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