May 29th, 2018 8:20 AM by Jackie A. Graves, President
We all like to stretch our dollars. Whether it's buying an item
on sale or getting a large coffee for the price of a small one, it feels good
and makes financial sense. The same applies when it comes to shopping for
mortgage rates – the lower the number, the better.
you've been working with your financial planner and pinpoint your
“homeownership comfort zone” – a $200,000 loan, or a monthly mortgage payment
that doesn't exceed $1,100.
Check out the
two ways you can win with the power of lower mortgage rates.
1: You can save your hard-earned dollars.
following scenario, using a $200,000 loan amount with a 30-year fixed-rate
mortgage as the constant, you see the effects of varying rates on your monthly
payment. Over the life of the loan, you can save tens of thousands of
dollars with the lower rate.
Mortgage Payment* on $200,000 Loan
Life of Loan Cost
2: You can buy more home.
following scenario, you’re trying to keep your mortgage payment at $1,100.
Here, you can see the power of lower mortgage rates and how they can help you
buy more home – up to $13,000 more in one instance.
not include the cost of taxes and insurance
One of the
most important things you can do when looking for a home is to shop around for the most competitive
mortgage rate. Rates differ from lender to lender, just like the price of milk
differs at different grocery stores. It’s advised that you talk with at
least three lenders to compare rates, mortgage terms and fees.
You’ll learn a lot in the process and will be glad you took the extra step.
Visit My Home by
Freddie Mac® for more information on the homebuying process and be sure to
follow our Spring Homebuying blog series.
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