One of the most important factors of your mortgage is the interest rate. It is absolutely necessary to secure the lowest possible interest rate to save money over the life of the loan.
For example, imagine you want to secure a mortgage for $150,000 and choose the 30-year, fixed rate term. This means you will pay a fixed interest rate, in addition to the principal, for 30 years. We will assume you have the potential to qualify for an interest rate between 3 ½ and 4 percent, taking into account several factors we will soon discuss.
Factoring in taxes and insurance we can assume:
The difference in your monthly payment is $42.56. Not a “make or break” for most people, but remember that you are paying this note every month for 30 years. (Which adds up to $15,321.60)
Reducing your interest rate can save you thousands of dollars
There are a variety of factors that play a part in determining your interest rate, and these are the five most important:
To learn more about keeping your mortgage interest rate low, please contact me today!
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