{"id":15568,"date":"2021-06-18T08:00:19","date_gmt":"2021-06-18T14:00:19","guid":{"rendered":"https:\/\/www.richmondamerican.com\/blog\/?p=15568"},"modified":"2025-03-06T11:38:53","modified_gmt":"2025-03-06T18:38:53","slug":"3-ways-to-make-todays-interest-rates-work-for-you","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/blog\/3-ways-to-make-todays-interest-rates-work-for-you\/","title":{"rendered":"3 Ways to Make Today\u2019s Mortgage Interest Rates Work for You"},"content":{"rendered":"\n\n\n

Wondering if now is the right time to make\na move? If you already own a home and are looking to make a change, this could\nbe a good time to sell and put your equity into a new home that better fits\nyour needs while also taking advantage of attractive mortgage interest rates.\nThe decision to sell (or buy) is a personal one, based on your individual\nsituation and your financial and lifestyle goals, but here are three ways\ntoday\u2019s mortgage interest rates could help you get into your dream home. <\/p>\n\n\n\n

1: Take advantage of lower borrowing costs.<\/strong>
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There\u2019s no doubt about it\u2014this is a competitive housing market. High demand and low inventory are driving prices up in many areas. But what is still on your side? Low interest rates! <\/p>\n\n\n\n

If you\u2019re facing higher asking prices\nthan you expected, don\u2019t lose heart. What you can afford is all about the monthly\npayment. It doesn\u2019t hurt to run the numbers. We recommend speaking to a loan\nofficer about how much your monthly payment will be at several different price\npoints.<\/p>\n\n\n\n

There are a variety of reasons demand for housing is climbing in many markets, and today\u2019s low interest rates are high on that list. To put today\u2019s rates into historical perspective, let\u2019s look at an example. The average 30-year, fixed-rate mortgage in May 2001 had a 7.15% interest rate, according to Freddie Mac<\/a>. Twenty years later, in May of this year, the average 30-year fixed rate was at 2.96%. <\/p>\n\n\n\n

So, what difference does a 4.19%\ndrop like that make and why are today\u2019s rates such a big deal? Let\u2019s say you\nwere purchasing a $475,000 home with a 30-year, fixed-rate mortgage. Enter\nthose two interest rates from 2001 and 2021 into one of the many mortgage calculators\navailable online and you\u2019ll see that this percentage change could adjust your\nestimated mortgage payment by as much as $1,216 in principal and interest. Even\nthough home prices have risen, as one might expect, since the turn of the\ncentury, it’s less expensive to borrow money today than it was back then.<\/p>\n\n\n\n

2: Maximize your square footage.<\/strong><\/h2>\n\n\n\n

Another way you can leverage great interest rates and lower monthly payments is to gain the square footage you might not be able to afford when interest rates rise. You may decide this is a good time to make your move if:<\/p>\n\n\n\n