You hear the saying “mortgage rates are at an all time low”. But what does that exactly mean? Low in comparison to what? If these are some questions you have asked yourself, this post is for you.
Interests rates are nearing a historic low. Even if interest rates were to raise a bit in the next few months, they would still be low in comparison.
Okay, so the rates are lower. So what? Well, interest rates impact your monthly payment dramatically. If you were to have a $20 a month increase to your mortgage payment that would be an additional $240 a year or $7200 for the life of your loan. So those interest rates make a difference. The lower the rate, the lower you will have to pay.