- Live Rates
- Contact Us
When it comes to buying a home, there’s a lot of budgeting involved. As a buyer, you want to do your best to pay the lowest price possible for your home so you don’t end up paying more than necessary.
But the price you end up paying for your home isn’t the only number you need to take into consideration. While that will certainly be a hefty amount, the interest rate that you pay on that amount can make a huge difference on the overall amount you pay over the life of the loan.
Your mortgage payments depend not only on the loan amount you took out to help you finance a home purchase. The amount you pay is also based on the mortgage interest rate you locked in at when you first applied for your home loan.
Even a 1% difference up or down on a rate can mean the difference between tens of thousands of dollars on your mortgage.
Let’s illustrate how much of a difference the cost of your overall loan will be with just a 1% rate differential. Assuming you took out a $500,000 mortgage on a 30-year fixed-rate mortgage.
Based on today’s rate of 2.96%, that would translate into monthly mortgage payments of $2,092. And overall interest payments over the life of the loan would be a total of $253,259
Now let’s say the rate you locked in at was 3.96% – which is 1% higher than today’s rate. Using the same loan amount and loan type, your monthly mortgage payments would be $2,366. And your overall interest payments would be $351,863.
That’s a difference of almost $100,000 in interest that you would have to pay if your interest rate was only slightly higher!
As you can see, even a small difference in mortgage interest rates can make a huge impact on your overall costs for your home loan.
That’s why it’s so important to shop around for the lowest rate when you’re looking to take out a mortgage. Right now, mortgage interest rates are extremely low and have hit all-time lows three times over the past few months. This makes now a great time to lock in a mortgage and buy a home, which can translate into major savings.
Let’s take a look at what the interest rates have been over time to help you see why now may be a great time to lock in a mortgage:
Interest rates are hovering near all-time lows. There’s more incentive than ever to make a move in today’s market.
If you’re ready to get into the real estate market to buy a home, get in touch with Sammamish Mortgage to start the process!
If you’re in need of a home loan, Sammamish Mortgage is here to help. We are a mortgage company serving borrowers across Washington, Idaho, Colorado, and Oregon. We have been providing mortgage programs with flexible qualification criteria since 1992. Please contact us if you have any questions or are ready to apply for a mortgage.
The Federal Open Market Committee of the Federal Reserve (FOMC) stated after its meeting that the Federal Reserve could increase its benchmark rate range twice throughout 2023.
There several factors that affect your mortgage interest rate, including your credit score and choice of property.