Before you make the decision to become a homeowner and take on the responsibility of a mortgage, it is important to first understand if you can afford this major financial commitment. This starts with understanding what the current interest rates are and how they can affect your future.

So, to help you get started, your local mortgage loan originator in Smyrna with Accurate Mortgage Group can look up what current interest rates are (because they change often) and how they can affect your mortgage.

How Interest Rates Affect Your Mortgage

An interest rate is a set percentage that is charged by your mortgage lender on the total amount borrowed by the consumer. The amount of the rate charged is determined by how well the current market is doing, the borrower’s income and their credit score.

If you have a low credit score, then you will be viewed as a high-risk borrower with a stronger possibility of defaulting on your mortgage. Because of this, lenders will be more likely to charge a higher interest rate on your Smyrna home loan, which will increase your monthly payments.

Future Projections on Interest Rates

According to realtor.com, the median listing price on homes has continued to increase during the past three years. In November 2015, the median listing price was $190,750. It increased approximately 6% to $202,000 the following year. By November 2017, the median price had increased again to $236,950 and, by 2018, the price increased an additional 9.7% to $260,000.

An increase in home prices has an indirect effect on mortgage rates. As home prices rise, there is a strong possibility that interest rates will do the same. Therefore, if you are interested in applying for a Smyrna home loan, now would be an excellent time to do so before the rates continue to rise even higher.

Contact Us

For more information on interest rates and how they can affect your mortgage, please contact your local mortgage lender in Smyrna – Accurate Mortgage Group – at 615-833-0456.

The post Everything you Need to Know About Interest Rates appeared first on Accurate Mortgage Group.

So, to help prevent stretching your finances to the highest possible limit, your local mortgage lender in Smyrna, with Accurate Mortgage Group, has listed some useful tips on saving for a down payment.

Tip #1: Lower Your Expenses

If you pay less than 20% of your home’s purchase price, your lender will require you to pay for private mortgage insurance. This is an additional fee that will be charged either monthly or as an upfront cost, to protect your mortgage lender in Smyrna in case you were to default on your monthly payments. Therefore, you will want to be sure and have enough money saved to avoid paying for an additional fee.

To help prevent these fees, start lowering your expenses today. Consider cooking at home more and avoid going out to eat so often. Maybe even try being a little more frugal with your heater, AC, and water, so your utility bill is not so high.

Tip #2: Additional Source of Income

If money is really tight or you have your eye on a home that is outside your budget, you could look for an additional source of income. Pick up some extra shifts at work or host a garage sale to help clean out your storage and earn some extra cash.

Tip #3: Postpone Expensive Vacations

If you go on an extravagant vacation every year, you may want to hold off for one year and instead, set that money aside for your down payment. Try planning a less expensive trip. This way, you can still enjoy some time off without spending too much.

Tip #4: Set Up Direct Deposit

An easy, mindless way to save money is to set up direct deposit with your bank. With every paycheck, have a designated amount, such as 20%, to be taken out and automatically transferred into a savings account. Set up this savings account specifically for your down payment so you will be less tempted to make a withdrawal.

Contact Us

For more useful tips on how to save for a down payment or to get started on an application for a Smyrna home loan, please contact Accurate Mortgage Group at (615) 833-0456.

The post Tips on Savings for Your Mortgage Down Payment appeared first on Accurate Mortgage Group.