If you’re a homeowner with a mortgage in Alaska, there’s no doubt that you’re keeping a close eye on current interest rates. mortgage rates have been at historic lows for years, but they may not stay that way forever. In fact, some experts are predicting that mortgage rates will begin to rise later this year.
If you’re concerned about the impact that rising mortgage rates could have on your finances, there are a few things you can do to prepare. Here is a mortgage checklist of eight preventive measures that can help you stay safe if rates do go up:
- Make sure your mortgage is current
The first step is to make sure that your mortgage is current. If you’re behind on your payments, catching up could be difficult if mortgage rates rise.
- Shop around for the best mortgage rate in Alaska
Don’t wait until rates start to go up to start shopping for a new mortgage. Start researching your options now so you can lock in a good rate before it’s too late.
- Build up your savings
One of the biggest risks associated with rising mortgage rates is that it could become more difficult to afford your monthly mortgage payment. One way to protect yourself against this is to build up a healthy savings cushion. This will help you if you ever find yourself in a situation where you can’t afford your mortgage.
- Refinance your mortgage
If you already have a home mortgage loan, refinancing could be a good option if rates start to go up. This will allow you to lock in a lower interest rate and save money on your monthly payments.
- Review your mortgage terms
Take some time to review the terms of your mortgage. If you have a variable interest rate mortgage, you may want to consider switching to a fixed rate mortgage. This will give you some peace of mind knowing that your mortgage payments won’t go up if rates rise.
It’s important to have a good understanding of how much money you’re spending each month. This will help you to be better prepared if mortgage rates do go up and you have to make some changes to your budget.
- Increase your home loan payments
If you’re able to, consider increasing your monthly mortgage payments. This will help you pay off your mortgage sooner and reduce the amount of interest you pay over the life of the loan.
- Rent out a room in your house
If you’re feeling squeezed by your home mortgage payments, consider renting out a room in your house. This can help to bring in some extra income and make your mortgage payments more affordable.
By following these tips, you can help protect yourself against the risks associated with rising mortgage rates. Make sure you also consult and seek the professional advice and help from a mortgage broker or financial advisor before making any decision. Stay prepared and stay safe!