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Rising Interest Rate Dangers

Tuesday Oct 9, 2018
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Residents of Albuquerque understand that mortgage rates are on the rise, which will affect those with adjustable rate mortgages as well as those just beginning the home buying process and don’t have financing secured.

The dangers that higher interest rates present, affect Home Equity Line of Credit (HELOC) and high interest credit cards. When the Federal Reserve raises interest rates each quarter, the effect causes increased payments on HELOCS and credit cards.

If borrowers have to pay more interest within their payment they won’t be able to make a dent in the principle. If the borrower has equity in their home a great option is to refinance and pay off the HELOC and/or high interest credit cards. The paradox here is that mortgage rates are increasing as well. So, the longer the borrower waits, the higher the refinance rates will be. The sooner that a borrower consolidates these into one mortgage, the better.

Indigo Mortgage offers a different option for people looking to purchase with LOCK and SHOP. Indigo Mortgage can lock-in today’s rate for 90 days even if the borrower hasn’t pick out a house yet! This is an exciting opportunity, so call Indigo Mortgage for more details.

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at (505) 836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in New Mexico.

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