I'm worried about rates going up. What do you suggest I do?
While the mortgage market varies day to day like any other market, the days
of sky rocketing interest rates are likely over. In the past, the Federal Reserve
did not control the economy like it does today. Rates would go up precipitously
when there was runaway inflation. Today, the Fed controls inflation by raising
short term interest rates (like the ones tied to Home Equity Lines of Credit)
keeping the economy from overheating, and thus mortgage rates on your primary
first mortgage low. Also, Mortgage bonds are a far larger market than in the
past creating more money out there to lend, and rates low. While 30 year fixed
rates may be correct for a small portion of the population, Having a long term
fixed rate of five years is right for most people, especially in California
where home equity rises consistently over time, and people are rather mobile.
The savings and stability of these loans is much more beneficial.
Read or listen to the Article "Rates are Rising, How High Will They Go?"