A mortgage is a loan on your home. Lots of people have them. The bank uses house as collateral, backing up the loan with its value.
Here’s an example of what a mortgage loan can look like over its lifetime:
If you get a loan for $100k, with a 3% interest rate, fixed for 30 years, at the end you’ll be paying about $150k
If your interest rate is 4%, you’ll be paying around 170k on a 100k loan. A 20,000 dollar difference!
While the monthly payments have a difference of around $40 a month, this adds up when you pay this 360 times!
As you can see, this is why a low interest rate is great for a buyer, especially in the long run.
Be sure you have a good lender on your side, and a Realtor like me, who will lead you through every step.
Contact me today and let’s talk!