Mortgage rates are at an all-time low since record-keeping began in 1971. As of this writing, the benchmark rate is 3.23 percent on a 30-year fixed-rate mortgage, according to Freddie Mac. The Mortgage Bankers Association says interest rates are at 3.4 percent. Foundation Credit Union has your back. Today’s blog explains how you can take advantage of these record-low mortgage rates.
Buy a New Home
Are you a first-time homebuyer? Do you want to move into a bigger home than you already have? Now is the perfect time to consider buying a new home. You can start the application process to get an idea of the home price you can afford at this time. It’s important to lock in a mortgage rate in case they start to inch upwards. Lower interest rates mean lower monthly payments and lower overall costs to you.
Refinancing is a big deal if you bought your home at a higher mortgage rate. However, many banks have set their refinance rates higher than rates for purchasing a home amid the uncertain economic times we’re in right now. Still, it’s a good idea to consider refinancing your current mortgage.
For example, you bought your home 10 years ago with 5 percent fixed-rate interest at $100,000. The total cost of that mortgage came to $193,000. Your monthly payment was $537. You owe $65,000 on your home loan now. You decide to refinance the remainder $65,000 at a rate of 3.75 percent. Your monthly payment drops to $301, and the total cost of the new loan comes to $108,369 over 30 years.
Your actual results may vary, but the idea of refinancing at a lower rate means you can make lower monthly payments and lower the overall interest you owe on your existing home.
Talk to Foundation Credit Union About Mortgage Rates
Want more information on mortgage rates? Talk to Foundation Credit Union today. Our loan officers can go over the application process to give you an idea of what kind of home you can afford. Contact Foundation Credit Union or call (417) 895-2770 for more details.