Getting a low interest rate on your mortgage can save you thousands and perhaps tens of thousands of dollars. In this article, we outline what you need to do in order to get low mortgage interest rates on a new home purchase or a refinance.

Low Mortgage Interest Rates are Currently Available

The timing couldn't be better for getting a mortgage than today. Mortgage rates are at or near all-time lows due to aggressive actions from the Federal Reserve. The Federal Reserve indirectly controls the general level of interest rates by raising or lowering the fed funds (or short term) rate. As a result of the economic crisis, the Federal Reserve has slashed the fed funds rate to zero and is is also purchasing long-term treasury and mortgage securities in an effort to restart the housing market. What does this mean for you? Low Mortgage Interest Rates!

Real estate is a tangible asset, much like gold and silver. It also appreciates in value over time, just like these precious metals. Real estate can be a great cash-generating asset, and also has its benefits through the use of financial leverage in the form of a mortgage.

The Three Main Reasons to Buy Real Estate

The three main reasons to buy real estate are:

For most investors, creating a diversified real estate portfolio is out of reach, especially when it comes to commercial real estate. Real estate investment trusts, or REITs, allow investors to pool their resources and invest in a portfolio of real estate. Specifically, a REIT is a company that owns, and in most cases, operates income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. The majority of REITs trade on exchanges and offer investors superior liquidity when compared with holding physical real estate assets.