As important as your credit score is in obtaining a great mortgage, another factor which plays a significant role is the mortgage rate. Because today’s mortgage rates can affect how much you’re able to budget for your new house and we recommend paying close attention to the rates. The general rule is: the lower the rate, the more house you can afford and it’s going to be more beneficial to you as a buyer. A seemingly insignificant rate fluctuation can mean the difference between landing your dream home within your price range, and making it unaffordable.
Over the past four decades, mortgage rates have changed significantly. They’ve risen to 18.63%, and then dropped to 3.31%. A 30-year fixed-rate mortgage probably won’t return to that record low, but today’s average rates are still considered historically low, and to the benefit of today’s home buyers.
Mortgage rates enhance your purchase power and help you to make solid financial decisions that affect the type of home you can purchase, and determine your monthly mortgage payment going forward. Work closely with your financial advisor, lender and real estate agent to gain more understanding of how mortgage rates can work for you.