When you are applying for a mortgage loan, the first thing that you would most likely be looking for is the lowest housing loan interest rate that a bank loan manager will present to you. There will be times when you will be presented with more than one set of figures. If you don’t do your research regarding your interest rate options beforehand, you will most likely be confused as to why you are being presented with more than just one and it will be very hard to listen to the manager’s explanation because you will be more focused on the figures in front of you. For this reason, it is very important that Seena Nassiri educates you regarding the most popular housing loan interest rate structures among those shopping for mortgage loans.
A SOR or Swap Offer Rate pegged housing loan interest rate also relies on the performance of the world economy. However, it is considered to be much more volatile as compared to other rates because SOR is based on FOREX. FOREX rates fluctuate more which is why SOR rates tend to go up and down more often. But one of the main reasons why some people choose the SOR is because since it is generally unstable, the rates can go down at any time.
Seena Nassiri highlights another popular housing loan interest rate choice among mortgage loan shoppers is the fixed interest rate. This mortgage loan interest rate does not change no matter how well the status of the world economy is. One advantage of this interest rate structure is the fact that unlike SOR pegged structures, those who choose a fixed rate will not be affected when the world market soars. However, because of that, homeowners who are under the fixed interest rate structure will also not benefit from low rates when the performance of the world economy is favorable. For this reason, it is very important that you consider all possibilities before you decide to sign up for a fixed mortgage interest rate.
Therefore, picking the best housing loan interest rate is not so easy.
Knowing your options can very well be the difference between savings and additional expenses. Always remember to carefully choose among several interest rates being offered to you before making a decision and take your financial capability in mind. It would not be good to have your own home only to be foreclosed in the future because of your inability to meet the mortgage payments. Seena Nassiri points out to check with your loan manager or a financial expert and inquire as to the best housing loan rate you can take advantage of without leaving a big dent in your savings account.