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Mortgage Speak

How Homeownership Builds Wealth

The 4th of July is more than just a day for celebrating the freedom we gained as a nation nearly 250 years ago. It's a day for celebrating the individual freedom and opportunity afforded to each American — freedom that lets you reach for the stars and create the life you've always dreamed of. A part of that freedom means having the financial stability you need to pursue your life goals, and the earlier you secure financial freedom in life, the more opportunity you'll have to make your dreams a reality.

If there's anything history has taught us, it's that homeownership is one of the best ways to build wealth and secure your financial future.

Here are five primary ways being a homeowner can help you accomplish this:


Mortgage Speak

BankSouth Mortgage: Interest Rate Updates

Many of you are likely aware of the recent rise in interest rates and may be wondering what’s next and what this means for the 2017 housing market.  While only predictions can be made, here is a recap of what we do know:

  • The Federal Reserve (the Fed) raised benchmark interest rates by 25 bases points after the Federal Open Market Committee meeting in mid-December.
  • This was the only Fed Funds Rate increase in 2016.
  • Indications were made to suggest 3 potential rate hikes in 2017, with a 70% chance of one hike by June 2017.

While these changes may concern those looking to buy and those in the housing industry, it’s important to look at the whole picture. 

Over the past 7-8 years, we’ve seen interest rates not only reach historic lows, but stay there rather consistently.  As part of the effort to get America out of the most recent recession, the Fed purposely kept interest rates low to help drive economic growth and encourage homeownership.   As our economy has strengthened and unemployment rates have significantly improved, the need to keep interest rates down has, in effect, subsided and this rise in ...


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