subject: Mortgage Rates Establish Hope Or Hopelessness [print this page] This morning I was listening to the radio while I was getting ready. After one of the songs came the normal commercials that we all know comes with listening to the radio. It started out talking about your mortgage and options for your home and payments. They advertised that you could get your mortgage rate as low as 4.8%. Then they promoted that if you went with their company that they would make arrangements for you to skip a couple of months on your mortgage to help you get on top of your monthly bills.
As I listened to this commercial it definitely sounded attractive to be able to skip a couple of months of mortgage payments, but what sounded more appealing to me was the mortgage rate. I haven't looked into what the current mortgage rates are right now, but 4.8% sure sounded pretty low from what our current interest rate is on our mortgage.
Many people purchased homes when the mortgage rates were higher. Not only were the mortgage rates higher, but the homes were selling for much more. There was big boom in purchasing homes and building new homes. The people in America were feeling confident and many had good jobs and were making a good income. Things in America seemed stable and people were buying with confidence and not give the current mortgage rates at that time much thought. They just knew that they wanted to get into a home.
The unfortunate thing is that those that purchased the new homes with the higher mortgage rate were hit with the mortgage crisis. Not only was it a mortgage crisis, but it was a debt crisis and an overall financial crisis across America that people weren't prepared for. American's were losing their homes and couldn't afford to take care of any of their debt. Families lost their jobs and weren't prepared. Many American's didn't have any savings put away for a rainy day and they were living barely within budget or even going a little over what they brought in.
With all of these things happening across America it has made everyone reevaluate where they are at financially and how they can afford things. One thing that is for sure is that American's are noticing that with the current mortgage rates and the other options to help with keeping their homes they are starting to take hope that they will be able to keep their homes and really afford to live their day to day lives. It's amazing how mortgage rates affect the entire economy and can either establish hope or hopelessness.
