If you haven’t been paying attention to the news recently, you may be missing out on the fact that mortgage rates are reaching all time lows.
“Investors are fleeing to safe-haven investments amid renewed coronavirus fears, sending 10-year Treasury yields sharply lower and this, in turn, will push U.S. mortgage rates to new lows.” Bankrate – Mortgage Rates Expected to Sink
This could mean a few hundred in savings per month on your mortgage payment. We hear about interest rates all the time, but it’s hard for people to quantify it to the savings they’d get when purchasing a home. When it’s likely the largest purchase you’ll make in your life, every fraction of a percent matters. Additionally, the various types of loans are generally available for everyone, minus a few exceptions (such as VA loans for those who’ve served in the military).
The following infographic shows how the different interest rates can mean substantial savings or additional costs in your monthly payment, as well as total interest paid over the life of a loan. This is why it’s important to explore the options (fixed rate conventional loans for 15 or 30 years, adjustable rate mortgages, jumbo, etc.) as well as talking to your lender about getting a better rate or shopping around for the same type of loan.
Here are some more relevant recent articles:
If you have any questions about interest rates or securing a mortgage, send me an email at firstname.lastname@example.org or call 847.373.8114. I’m happy to put you in touch with one of my preferred lenders.