Mortgage interest rates tend to fluctuate over time, and you might have heard that they are at an all-time low right now. Watching as others take advantage of the low rates to lock in an affordable mortgage seems unfair when you are stuck with a higher rate that you might have had to agree on during a less buyer-friendly time. Now, you’ve got the chance to turn things around by making sure that you know what to do before interest rates rise again.

Take a Good Look at Your Current Financial Situation

Your first step is to make sure that you know what your interest rate is on your current home loan. Pull out your paperwork and see just how much extra you are paying when you shouldn’t have to now. Most likely, it is higher than the going rate now if you’ve been in your home for a few years. You’ll also want to analyze your position for applying for a new home loan. Make sure that your credit score looks good and figure out how much money you have available for a down payment.

Understand the Consequences of Waiting to Make a Change

You could always sit out this major asset for buyers, but it could cost you some serious money in the long run. Once the mortgage rates rise again, you’ll be paying a higher monthly payment on your house than you would if you bought a new home today. You should also keep in mind that even small interest rate increases can make a major difference in your mortgage payment. This could cause you to have to look for a smaller home in the future to stay within your budget.

Explore the Possibility of Refinancing

If you don’t want to move just yet, then the low-interest rate is still too good to pass up. You might be able to refinance your home for a lower rate that helps you to secure a lower mortgage payment. Being able to save more on your house payments can help you to pay it off faster or put more money into savings.

Decide Whether You Want to Move Up or Downsize

If you’ve been sitting on the fence regarding a move, then this is your best time to make a decision. With the lower rates, you may be able to work with real estate companies in Sherburne County to find a bigger house that costs close to what you are paying for your mortgage now. Buyers who have been waiting to downsize will also find that the lower interest rates can counteract the rising home prices so that moving makes more sense.

Making smart financial decisions often means being willing to take advantage of times when the market works in your favor. With interest rates projected to rise again soon, there is no time like the present to take action. Securing a low rate while you can is a decision that you’ll be thanking yourself for in the future when you watch people start having to pay more for their mortgage again.