Record Low Mortgage Rates Impact Home Ownership
Searching for a new home is both a rewarding lifestyle experience and a test of your real estate knowledge. While the market continues to improve the available inventory remains at lower price points with most experts predicting rises in overall prices for the next few years. As a potential new homeowner, the opportunity to purchase and see an increase on an investment is the American dream.
Along with location and price, a low interest rate paid toward the home loan is a crucial factor impacting the overall profitability, success for your home investment. Understanding the value of loan rates, points, and overall monthly, annual, life of loan costs at rates is a large piece of the home investment puzzle. Whether you’re a first-time homebuyer or a repeat homebuyer, whether you’re buying a home or refinancing into a new loan, locking in the lowest possible mortgage rate is always a top concern. Mortgage rates fluctuate daily and can vary for each mortgage but today mortgage rates are amongst the lowest ever.
Momentum Realty Group helps potential home owners find their dream home, community and provide an understanding of home costs and related interest rates. While pricing remains relatively low compared, the rock-bottom interest rates offered now combine to make home ownership more affordable, and possibly the best investment, in years. Mortgage rates have fallen to their lowest point in decades over the last few years, opening up additional buying and refinancing opportunities for millions of American borrowers. But low mortgage rates never last forever. Whether you’re buying or refinancing, have an interest rate or a range of rates in mind that best suit your budget. Once mortgage rates reach those levels, it’s time to lock in your rate. Remember: mortgage rates always rise faster than they fall.
While 30 year fixed rate loans hover in the 3.3-3.5% range with 15-year fixed loans at record lows dropping to unheard of 2.6%. Using Momentem Realty Groups Mortgage Calculator to easily input your home price, loan amount, the huge costs savings of the low rates compared to just months ago are astounding.
For example, let’s assume a standard 30-year fixed loan amount of $250,000. In the past, a rate was considered excellent if it was at 7% netting a monthly payment of $1,665. Today, at historic rates of 3.5% that rate falls to $1,120 per month, a savings of over $500 a month, or $6,000 a year!