According to Freddie Mac the 30-year fixed-rate mortgage interest rate is currently 3.23%. This is the lowest rate since 1971. Last year at this time the interest rate averaged 4.14%.
If you’ve been thinking buying or refinancing your home – now is the time to take advantage of this great rate!
Are you wondering “how much of a house can I afford?” Check out this mortgage calculator from Nerd Wallet to find out. Keep in mind that your income should be at least three times your mortgage if you are trying to finance your mortgage.
Save on Your Interest Rate
Another great tip to save a ton of money applies to your 30 year fixed mortgage. If you pay one single extra payment per year, you will shave off seven years from your 30 year mortgage! This one is easy. When you receive a bonus just apply an extra mortgage payment and you’ll have your house paid for in full seven years early.
Another idea is to reduce your Christmas budget by the amount of one mortgage payment. Apply a portion of that budget to pay your single extra payment instead of showering your kids with a bunch of gifts that will be used briefly and end up at the Goodwill. Your kids will thank you when your house is a part of their inheritance because it’s paid off in full.
Avoid the mistake of continual refinance to use up your equity. At the end of the day you want to actually own property instead of the bank owning your house.
You don’t want tears flowing at the reading of your will because there is nothing to give. Be wise with your mortgage. Many people’s house is their largest investment. Put this single extra payment plan into practice now and save yourself a huge amount of money.
