Why Low Mortgage Rates Make Now a Good Time to Buy or Refinance
Mortgage rates have dropped to near historic lows, making it a great time to refinance or purchase a property.
Refinancing with the lower rate may mean significant savings for people who bought in the last three years, while those hunting for a new home may get more spending power.
According to Freddie Mac's survey, 30-year fixed interest rates average around 3.6%. A year ago at this time, the 30-year fixed interest rates averaged 4.53%.
How do rates affect how much you pay?
Let’s break it down.
A 1 percent difference in mortgage rate on a $200,000 home with a $160,000 mortgage increases your monthly payment by almost $100. Although the difference in monthly payment may not seem like a lot, the 1 percent higher rate means you’ll pay approximately $30,000 more in interest over the 30-year term.
“2019 has been the best year for mortgage rates in a long time. Sudden and drastic interest rate improvements like we are currently experiencing are increasingly vulnerable to quick market corrections. If you are on the fence about purchasing or refinancing, now is not the time to sit on the sideline.”
– Jordan Schick, Head of Mortgage
Check out our mortgage calculator to see how an increased rate raises your monthly payments.
Our mortgage lenders are experts at navigating the rate market and can help you make the best decision to fit your needs.
Start the conversation with one of our friendly lenders or call (800) 588-7551 today.
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