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Current Interest Rates
Refinance Now With A Fixed Rate Mortgage
The economy is struggling badly right now which means there is high competition for everyone, banks included. Current interest rates have reached an all time low and real estate has dropped about 30% or more. So that makes right now the best time to buy and the best time to refinance your mortgage as well.
You should look at your current mortgage and compare it to a new lower interest rate to make sure it will be worth it. You will have closing fees with the bank for about $1,500 to $2000 so if you can make that back in the next year and continue saving for the rest of the years on your mortgage you will save a lot of money.
Use a mortgage calculator to see what the difference in your monthly mortgage payment will be to make sure you will be saving money. If you can simply refinance and save $200 per month then why wouldn't you do it?
If you a buying a home then you should make sure to use an interest calculator to make sure you can be approved in the first place. The amount you can borrow is called your borrowing power, or buying power, with the bank.
They will let you know what percentage of your income you are currently using and the amount you will be using with your new expenses. That percentage is called your debt to income ratio which shouldn't be over 40% in this economy.
Getting to know, and use, a mortgage calculator will benefit you in ways you couldn't imagine. You will use the calculator every time you hear interest rates went down one point to see if it will be worth a refinance or buying a new home.
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