Interest rates increase
As many of you living in USA may have noticed that our home loans interest rates are no longer the lowest. For the past two years, the interest rates have increased a little by little. Many homeowners were affected by the increment of the interest rates and had caused them to foreclose on their homes.
Read the news yesterday that the subprime lending industry is going down due to the increase in foreclosures. Subprime lenders were very in demand during the booming years in the real estate market. Many buyers with no so good credit history were able to get themselves a place to call home by paying a higher interest rates provided by these subprime lenders.
Lucky for us, we weren’t affected by the increase of the interest rates. Seven years ago, when we were shopping for mortgages, we only looked for conservative loans and found a great 30 years fixed program that fit our budget. We feel so lucky to be able to own a home in this city without needing to worry much about all the upheaval in the lending industry.
