Real Estate

Interest Rates Got you Down?

Are you like many home owners who have decided to stay in your current home due to rising interest rates? Why wait to live in your dream house? There are many ways to save money on your mortgage!

Although interest rates have increased, when you look at the historic rates recorded by Freddiemac (linked below) you will see they have been much higher in the past.

Purchasing a home is still a great way to hedge against inflation. Although rates have increased, there are many ways you can save money on your home. Paying an extra $50 each month can save you over $28,000 and take 3 years off of your mortgage (calculating a $200,000, 6% interest, 30yr loan) Imagine saving $28,000 just by putting aside a little over $12 a week to apply to your mortgage!

Another great way to save is to pay 1/2 of your mortgage every 2 weeks. When you make bi-weekly payments you are actually making an extra mortgage payment each year. That payment goes directly towards your principal balance therefore reduces the amount you pay interest on. Depending on your interest rate and loan amount, you will take years off of your mortgage and save thousands of dollars.

Combining these two money saving tips will get you optimal savings. Take a few minutes and see how these tips can help you!

As always, I am here to help! Feel free to reach out.

Dawn Lochner, Broker with LaMore Realty. Call me at 815-405-4692

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