Mortgage rates are influenced by the official interest rate or Target Cash Rate as set by the Reserve Bank. Lower mortgage rates have the opposite effect. The high mortgage rates severely limited housing affordability. So what is the difference between nominal and real mortgage rates? Real mortgage rates take into account the effect of inflation so that Real Mortgage Rates = Nominal Mortgage Rates minus Inflation Rate. In 1989 when the nominal mortgage rate was 17%, inflation was running at approximately 8% per annum. Today nominal mortgage rates are approximately 8% per annum and inflation is running at around 2% per annum so that the real mortgage rates are 6% per annum.
Well, if you are planning to buy a house with the help of mortgage loans, then you should always try to select the perfect mortgage plan which is well enhanced with a low mortgage rate. It is quite difficult to look out for the perfect mortgage plan which is well enhanced with a low mortgage rate.
Below mentioned are some of the major tips through which you can acquire the low rate mortgage for your self.
1. Comparison between Various Lenders
2. Keep Your Credit Great
3. Investigate About the Hidden Fees
4. Always Try Negotiating
So, these are some of the efficient ways through which you can acquire the best mortgage rate for yourself.
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