Current Mortgage Rates: Richmond, VA
2.875% (2.938% APR) 30yrs
2.375% (2.381% APR) 15yrs
as of 01/25/21
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How to Take Advantage of Low Mortgage Rates

How to Take Advantage of Low Interest Rates Web

Mortgage rates are LOW. Learn how you can take advantage.

We’ve discussed how interest rates can fluctuate in the past. Interest rates fluctuate based on the Federal Reserve Monetary Policy, market movements and inflation, and the state of the economy. Anything that ordinarily affects bank rates and stocks could affect current interest rates. Interest rates for 30-year fixed-rate mortgages started the year at 4.5%, and have fallen below 4% this July. This trend is expected to continue, with rates being projected as low as 3.5%!

If you’re shopping for a mortgage rate, you know that the difference of 1% in rates can be the difference between buying a home right now and not. So how can you capitalize on the low rate trend? Here are a few ways to make the most of it right now.

Learn more about why interest rates fluctuate.

Get Pre-approved

With interest rates being so low, it’s a good time to learn about your options. Speak with a local mortgage lender about your options for preapproval to see what amount you could be approved for. You may be surprised how much a lower rate can impact your approval, and the options may make this the best time for you to buy a home. But act now, because lower interest rates can mean a boost in shoppers looking to buy a home.

Learn why you should seek pre-approval.

Lock In a Low Rate

One of the major benefits of pre-approval is that you can sometimes lock in a low rate at the time of your application. When you lock in a rate, your mortgage lender has agreed to honor the interest rate that is available on the date of your pre-approval for the duration of your approval period. This is a great option for homebuyers that are just beginning their homebuying process, or for those who are just exploring their options.

Remember, being pre-approved doesn’t mean that your mortgage details are final. Your final mortgage will reflect your current credit score, down payment, house cost, and closing details.

Start Shopping

If you’ve been waiting for the right moment to start the homebuying process, now may be the best time! You won’t be alone, mortgage applications have been on the rise with reduced interest rates becoming available. Even better, home prices have not accelerated with the mortgage rate decline⁠—allowing more options than ever for homebuyers. It’s never too soon to start talking with a local mortgage lender to learn about your options.

If you want to know when you’re ready to start shopping, check out these tips.

Save When You Refinance

One of the biggest advantages of a low interest rate is for existing homeowners! When interest rates are low, it’s a great time to refinance your home. When you refinance, you can get a new mortgage based on accumulated equity in your home, current financial standing, and most recent credit score. You can take advantage of the reduced rates and save money over the life of your loan.

If you’re interested in refinancing, learn more here.

Start an Investment

If it’s your goal to purchase an investment property, now is a great time to look. Whether a second home, rental location, or vacation destination, lower interest rates can benefit you. Talk to a mortgage lender to learn about your options and get shopping.

Take Advantage

Whether you are a first-time homebuyer, looking to refinance, or planning on investing, now is a great time to take advantage of a reduced interest rate. If you purchase a home in the latter part of 2019, you could plan to save big: A 1% interest rate difference on a $300,000 is a savings of $3,000 on the life of a loan. Even more, because an interest rate can affect your mortgage insurance, closing costs, and other payments, there are both immediate and long term savings.

It’s never a bad time to start the homebuying process, and a great way to get started is by contacting RatePro Mortgage. We’re here for all of your questions. Contact us today!

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