Record-low interest rates on mortgage loans continue to go down in the spring of 2020. The average rate for a 30-year fixed mortgage is 3.15%, according to data from Freddie Mac. It’s the lowest interest rate since the agency started to keep this information in 1971. In today’s blog, Volt Credit Union explains how to take advantage of record-low rates on mortgage loans.
Related Post: Refinancing Your Mortgage, Is Now The Right Time?
Compared to a Year Ago
At the current 3.15% 30-year mortgage rate, payments on a $300,000 house are $1,289. When the rate was slightly above 4% in 2019, the same monthly payment was $1,443. Over the span of 360 payments, that’s a savings of $55,440! Your actual results may vary, but you can see the difference low mortgage rates can make for homebuyers this year.
Buying a Home
If you’re a first-time homebuyer or looking to move into a bigger home, you can save tens of thousands of dollars over the lifetime of your mortgage. Volt Credit Union walks you through the pre-approval process, helps you determine how much home you can afford, and what you can do to improve your chances of getting a lower rate on a mortgage loan.
Refinancing your mortgage loan may lead to lower monthly payments. The terms of the refinance depend on how much you’ve already paid on your current mortgage, the time you have left to pay it off, and what you have left to pay. You might be able to pay off your current mortgage loan faster or with lower monthly payments if you find the right refinancing for you. Volt can help with that.
A home equity line of credit (HELOC) can help you in several ways. Rather than refinance what’s left of your mortgage loan, you can get a loan for the entire value of your property with a lower interest rate. For example, you got a mortgage for $200,000 a decade ago for your home. You’ve paid $85,000 of it. Your home is worth $300,000 now. If you get a HELOC, the new loan gives you cash in your pocket above the equity in your home, which can combine your home’s value and how much you’ve already paid. You don’t have to borrow the full amount of equity, but it can give you cash on hand if you want. You can typically borrow up to 85% of the value of your home minus the amount you owe.
Related Post: Dreaming of your first home? Here is what you need to know!
Mortgage Loans at Volt Credit Union
Volt Credit Union is proud to re-volt against banking as usual. We can help you take advantage of record-low rates for mortgage loans, if you qualify. Contact Volt Credit Union or call (417) 862-0471 for more details.
Teri could you call me about possibly changing our loan from a 30 to a 15 year. Thanks!