Investing in Your Home Sweet Home
The reason doesn’t matter - a lower interest rate is always a good thing! You love your home sweet home, but you don’t want to be paying crazy interest rates! Today we talk about how to lower your interest rate so you can save money and live happily ever after.
Let Your Credit Score Do More
A few weeks ago, we talked about 3 Magic Numbers: your credit score! Naturally, the higher your credit score, the lower your interest rates could be. Still, shop around to find different loan companies who could offer you the best rates. NerdWallet has a quick tool for finding the best mortgage rate for you!
➜ Shorten Your Loan
The shorter your loan, the less interest you pay. This doesn’t necessarily mean you’re paying less for your house, but simply you’re paying less interest. Need some help deciding on a monthly payment that works for your family? Ask us as Practical Accounting Solutions - we can help you manage your wealth and plan for your financial future!
➜ Larger Down Payment
Similarly to shortening your loan, you’ll ultimately pay less less interest with a larger down payment! Ask us as Practical Accounting Solutions - we can help you manage your wealth and plan for your financial future!
➜ Reduce, Reuse, and REFINANCE!
Okay… that may not be the right world, but refinancing can let your do a few things:
You can lower your interest rates
You can shorten your mortgage loan
You can switch between an adjustable-rate mortgage to a fixed-rate mortgage, or vice versa!
Refinancing can also be an expensive option. According to Investopedia, it can cost anywhere between 205% of your loan’s principal to refinance. However, you can also save thousands of dollars in interest payments! Speak with your loan counselor to find the best refinancing option for you!
Conclusion
Lowering your mortgage interest rates may take some research, but investing in your home sweet home will be worth it! Questions? Ask us how we can help!
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Disclaimer: The views presented in this post are meant as educational resources and should not be taken as direct advice for your personal finances or small business. Should you have questions regarding a post relating to your specific finances, please contact us at info@practicalaccountingva.com.