The sub-prime lending along with various other factors were the main reason for the economic crisis. Even now, when the economic crisis is over, we can still see the after affects of this crisis. The mortgage interest rates are quite low even now and thus it is considered to be the best time to get a mortgage. Here are some of the ways which will help you in taking advantage of the low rates:
Buy a property: Be it a rental/investment property or your primary home, this is the best time to buy and take advantage of the low rates. If you go for a fixed rate mortgage, the loan rate will remain the same even when the market rates have increased. Apart from this, the home prices are quite low. So, you will have to take out a lesser amount of mortgage to buy your dream home.
Refinance an existing mortgage: You may own a primary home on which you have a mortgage with very high interest rate. In order to take advantage of the low rates, you can refinance that existing loan and go for the lower interest rates. Refinancing your mortgage at a lower interest rate will help you save money in the long run.
Diversify your portfolio: Investing money in the present market is quite risky. If you want to spread up the risk, it will be better to diversify your investment portfolio. Your financial advisor will help you in knowing the various alternatives. You should be on your guard while buying bonds when the interest rates are low.
Student loans: Federal student loan rates normally remain low. With the crisis in the market, the interest rates on such loans have fallen further. If you presently have a student loan, then you can contact the lender and check out if he can let you know any way out to take advantage of the present low rates.
Car loans: Though the automobile market has not faced much due to the economic crisis, the overall rates for car loans are low. Moreover, in order to encourage the people to buy cars, the lenders have started offering different types of incentives to the borrowers.
Pay off credit card debts: Unlike mortgage and car loans, credit cards have higher interest rates. So, in order to be on the safer side, it will be better to work on it and get rid of the credit card debts. If you have saved a certain amount of money, you can use it to pay your high interest credit card debts. However, you can always negotiate with the credit card companies in order to get lower interest rates to pay off your credit card debts.