Experts suggest locking in house, car loans

August 8, 2011 3:43:56 PM PDT
Monday may be the day for Aaron Wyler to lock in a mortgage rate. The downgrade of the U.S. credit rating forced rates even lower, but experts say it won't last long.

Wyler is considering refinancing with a seven-year arm at 3.25 percent. He would save $300 a month.

"Just savings. Savings, so it'd be a tremendous advantage for me to lock in," Wyler said.

Wyler is working with a mortgage banker at Baytree National Bant and Trust. Banker and brokers are encouraging those who are ready to lock in their rate soon. The U.S. downgrade forced more traders into bonds which, for the moment, pushed mortgage rates lower.

"It's important because the rates we see now may not be the rates we see in two hours or two weeks. So time is of the essence," said Justin Lopatin, Baytree National Bank & Trust.

At Grossinger Toyota, customers who wait may miss low financing rates. The general manager says they have been warned the recent downgrade will increase the rates they offer customers.

"We got word, I think it was 15 banks, today are going to raise their rates ," said Brian Weinberg, Grossinger Toyota.

While there interest rates may be moving up, financial planner Chris Long said rates are historically low and any big purchase should be part of a long-term plan.

"Just because the markets have dropped or because interest rates might be dropping, it doesn't mean you need to change your long-term plans because of that," said Chris Long, Long & Associates

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