This week in the NZ Herald Ask an Expert I got the following question …
“I have just fallen in love with a house which is probably about $100,000 out of our price range but I figure my income can only go up and interest rates are so low. My question is, is it outrageous
With fixed rates having increased we re-look at mortgage strategies but nothing has really changed from our previous strategies. It is all about having a clear strategy and not wavering when confronted with irrational market panic!
Having done over 1,500 mortgage reviews in 3 months, we thought we should analyze some of the data without going overboard to see what it told us!
Mortgage rates are forecast to bottom out around June 2009. Short term rates could get as low as 5.50% with longer-term rates getting down to around 6.00%-6.50%. In my opinion that means taking a six month fixed rate now at 6.50%-6.90% is the best option. In six months you can then look to split your mortgage into multiple fixed rates and spread them over 3-5 year fixed terms
most recent posts
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Musings | Bank Economist versus Pikelet the Pig
July 31st 2010 -
NZ | Buying Property in New Zealand
July 25th 2010 -
Mortgage Rates | Forecast after July OCR
July 17th 2010 -
First Home | Kiwi Saver Deposit Subsidy
June 17th 2010 -
Credit Crisis | How the Housing-Life Cycle is Broken
June 13th 2010