4 Ways To Take Advantage Of Today's Low Interest Rates...
If you bought a home while interest rates were higher, you may be able to cut back significantly on your monthly mortgage payment by obtaining a new mortgage with a lower rate.
The average 30-year fixed mortgage rate has been about 3.75% in recent months, according to the Federal Reserve1. The interest rate you qualify for may vary according to your credit rating. If your current mortgage is around 6% or higher, you may be able to gain significant savings by refinancing – particularly if you plan to stay in the home for many years to come.
2. Buy a home -
Although home prices have been rising in many parts of the country, the current environment May be a good time to buy your first home or upgrade to another home that better suits your Needs. By buying now, you may be able to lock in a mortgage at one of the lowest rates in Many years. Call Loan On Time Now (408) 573-0333 To Take Advantage of Today Low Rates!
If you are considering buying a home, you might consider choosing a fixed-rate mortgage over a lower interest adjustable-rate mortgage, particularly if you plan to live in the home for many years. According to Freddie Mac (the Federal Home Loan Mortgage Corporation), the average rate on 5-year adjustable mortgages was 3.46% as of July 2019.4 While an adjustable-rate mortgage may save you money on your mortgage payment in the short-term, if interest rates begin to move up in the future, your rate will rise along with the market and, possibly, balloon. But with a fixed-rate mortgage, your rate is locked in for the entire pay-off period.
If you are already a homeowner with an adjustable-rate mortgage, and you plan to stay in your home for many more years, you may consider refinancing to lock in a fixed rate. Although the fixed-rate would be somewhat higher than the adjustable rate for now – and you would be required to pay closing costs – down the road, if interest rates rise, you may be happy you made the switch.
If you are planning to buy a second home, this may be the time to do it while mortgage rates are low. Even if you can’t land a bargain in the housing market, you may still be able to lock in a favorable mortgage payment for a second home at today’s low interest rates.