On the surface, it may seem like paying cash for your new home is the better option. But, with low rate mortgages available and your other financial obligations, is it wise to fork up all your cash.
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.
Even a 1% difference up or down on a rate can mean the difference between tens of thousands of dollars on your mortgage.
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:
- 1970s: 8.86%
- 1980s: 12.7%
- 1990s: 8.12%
- 2000s: 6.29%
- 2010s: 4.07%
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! Click the Image to Download
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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.