We’re all familiar with the adage “Every cloud has a silver lining.” Well, that old saying has never been truer than it is now. As we all wait, with great anticipation, for signs that the economy is rebounding, a real silver lining here is that mortgage rates are still the lowest they’ve been in decades. This presents an exceptional opportunity for many of us to finally take the plunge and become homeowners or refinance that higher rate mortgage to save a significant amount of money over time.
What is your bottom line?
- To view our current mortgage rates, go to broncofcu.com. Click on the “Rates” box in the left menu and then click on “Mortgage.”
- To use our mortgage calculator, just click on the words “Mortgage Bot” at the top of the Mortgage Rates page.
- Experiment with different housing price points , mortgage types and terms. And there you have it. Everything you need. At your fingertips.
If you don’t own a home, now is the ideal time to weigh your options. Get started by doing some “reverse math,” with your current monthly rent payment as the target. Using our mortgage calculator, experiment with different price points. For example, check out what a $200,000 house with a 30-year fixed rate term would cost you each month. Then compare it to what you’re paying in rent. You may find that the mortgage payment is actually smaller than your rent payment! If it isn’t, don’t get discouraged. Keep experimenting until you do identify a price range that equates to about the same as your monthly rent. There is still a surplus of undervalued, quality homes out there. So you will get a lot of house right now for the budget you set. Plus, you’ll be building equity for your future.
If you do own a home and haven’t reviewed your current mortgage situation in at least a year, now is the ideal time to do so. First, you’ll want to verify your existing mortgage balance. Next, check out our rates and use our convenient mortgage calculator to compare what you’re currently paying versus what you would be paying by refinancing to one of Bronco’s low-rate mortgage products. You might discover that you could be saving hundreds of dollars every month.
If you’re fortunate enough to own your “forever” dream home, then think about refinancing to a shorter term fixed rate mortgage—from a 30-year term to one that is either 20 or 15 years, for example. Rates on shorter terms tend to be more aggressive, so it’s quite possible that for the same dollars each month, or just a bit more, you can decrease the length of time it will take you to pay off your mortgage. And, in the process, you will save tens of thousands of dollars in interest payments. Just click through to Mortgage Bot and you’ll be able to review the different rate/term options available to quickly determine if this strategy makes sense for you.
Even if you’ve recently experienced a layoff or salary reduction, a decrease in the appraised value of your home or an unexpected expense, talk with one of our Member Service Representatives. They’re here to provide you with sound advice on how to make the most of these historically low mortgage rates (and other ways to keep more money in your wallet, by the way).
Of course, actual mortgage interest rates will vary and everyone’s financial situation is different. But as you can see from the examples in this article, silver linings do exist in this economy and right now it pays to do the research.
Give us a call at 757-569-3771 to set up an appointment, drop by a Bronco office or visit our website today.
