The mortgage market is very strong right now, even after seeing slight rises in interest rates in the last month. You can still take advantage of these low rates and save yourself hundreds of dollars a month, and thousands over the life of your loan. You need to act quickly, though. The Fed has indicated that they will raise base rates soon, which pushes the interest rate for everything higher. In that spirit, here are four ways to protect yourself from rising mortgage rates.
Protect Yourself From Rising Mortgage Rates: Fix That Rate
Low mortgage rates are the best time to lock in to that mortgage, obviously. A fixed-rate mortgage is the only way to make sure that you’ll pay the same every month and not have to worry about the vagaries of the market. A decade ago, a fixed rate mortgage would have you paying 6% interest on your mortgage.
Now, getting a fixed rate on your refinance could take that rate all the way down to the 2’s if you hurry. There’s a huge difference between 6% and 2% when it comes to your mortgage. On $200,000 over 30 years, a 6% interest rate costs you $431,676, while a 2% costs you $266, 126. You’d also save over $400 a month, and know that you’d be making that smaller payment every month.
With an ARM, or Adjustable Rate Mortgage, you will constantly worry about what the market is doing, as that will change your rates. As rates rise, your mortgage payment rises with it.
Protect Yourself From Rising Mortgage Rates: Get In Now
Your window to refinance at the lowest rates we’ve seen in years is still open, but may be shrinking steadily. You want to jump through that window, especially if you are currently paying more than you need to on your mortgage.
Grab your mortgage statement and take a look at the mortgage rate. If it’s anything higher than 3%, you’re already paying too much.
With a new administration promising to be more business-friendly and eyeing fewer regulations on how they operate, interest rates will likely rise. Don’t let this historic window close on you.
Call The Home Loan Expert, Ryan Kelley and lock in your mortgage rate now to save thousands. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555.
You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?