Dropping interest rates have made the news recently, and these new low rates could mean big savings for homeowners. Wondering if now might be the right time for you to purchase your dream home or consider refinancing? Read on for helpful tips for those in the market for a new or refinanced mortgage.
What does this mean for those in the market for a mortgage?
Whether you’re ready to purchase a new home or are interested in refinancing to lower your monthly payments, it is worth seeing how much these new lower interest rates could save you. For example, if you took out a $300,000 mortgage in late-2018, you could save $240 per month with current interest rates based on Freddie Mac data.
Because interest rates vary by the day, it’s important to establish a relationship with a trusted mortgage expert who can guide you on the best time to lock in your interest rate. “The mortgage rates you’ll be quoted are unique to each financial institution and depend upon your individual situation including any rate discount programs you might qualify for, like VA or FHA loans,” says Bert Rogers, Mortgage Loan Officer at AimMortgage in Lubbock. “We will help guide you through the application process in order to give you the best rate possible.”
New Home Loans
The new lower mortgage rates indicate now is a good time to buy your new home – whether that’s your primary dwelling or a secondary home. Many loan discount programs only apply to the purchase of your primary residence, making it even more important to lock your low interest rate down on vacation homes and investment properties.
The first step in buying any house is determining your budget. This helpful tool walks you through the process of finding out how much you can borrow. You can calculate your mortgage qualification based on income, purchase price, or total monthly payment. If you have already spotted your dream home, a mortgage loan calculator can help you to calculate how much your monthly payments will be at different price points.
Once you are ready to purchase your new home, your mortgage loan officer will walk you through your mortgage application process, including any pre-qualification, and help you secure the lowest interest rate possible.
Refinancing an Existing Mortgage
If you’re like many homeowners, you’ve heard a lot about refinancing, but you aren’t certain when it becomes advantageous to go through the process. The closing costs incurred during a refinance are an important factor to consider when refinancing, though low-interest rates combined with the amount of equity you have in your home can often lead to quickly recouping these costs. This refinance break-even calculator can help you determine the number of months it will take you to break even if you decide to refinance your home. The sooner you break even on your refinanced loan, the bigger your savings in the long term.
Once you’re ready to refinance, your mortgage lender will need your existing mortgage paperwork including the information on your current rate terms, your current loan amount, any improvements, and the equity you have in your home. An AimMortgage lending expert will help to make the process quick and simple, walking you through each item you need before applying.
If you’re interested in learning more about locking in your low-interest rate, contact your local AimMortage lending expert.