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Current Interest Rates
What Interest Rate Is Best For You
Interest rates can be very confusing sometimes because a different rate seems to be applied to each type of loan. As you know, everyone's financial situation is different so the banks and lenders like to offer a type of mortgage loan for everyone. So if you're buying a home and you want to find the best interest rate for you, how do you do it?
Use a mortgage calculator and write down all of the different monthly payment options. If you find that a monthly payment is out of reach you can make a few changes. Look at the current interest rates on my page for each different type of loan. Make sure you fully understand each type of mortgage before signing up because certain loans are only meant for specific situations.
Fixed rate mortgages offer very fair interest rates because it's the most popular type of mortgage loan. The interest rate doesn't change throughout the entire loan so it's usually th most attractive offer. ARM rates change yearly and will adjust your mortgage payment up or down each year after the fixed portion. You can get the lowest ARM rate by getting only 1 year fixed, however it's only that low for 1 year so the rest of those years it might be higher.
You should use a mortgage calculator to make sure that you can afford your monthly mortgage payment during the worst of times. If interest rates jump 1% in the next 3 years, will you be able to afford your payment? A mortgage calculator will tell you all of that and more. Use the amortization schedule attached to check how much of your money goes to interest and how much goes to principal. Then check your savings if you add $50-100 in principal each month. the calculator will let you know how many years you'll save and how much interest it adds up to over those years.
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