How Much Can A 1% Difference In Your Mortgage Rate Save Or Cost You?

The short answer: It can produce thousands or even potentially tens of thousands in savings in any given year, depending on the purchase price of your property, your overall mortgage rate, and the total amount of the mortgage being financed.

By way of example, say that Taylor, a 30-year-old woman who is a first-time home buyer, wishes to obtain a 30-year fixed loan on a new home with a 20% down payment. Below, you can get a sense of just how much that she stands to save given a 1% difference in interest savings on her 30-year mortgage.

As you can see, savings stand to be well over $1,000 in just the first year of Taylor’s home ownership alone. Multiply these savings by the entire life of a 30-year loan, and she’d potentially save enough to purchase a car, pay for a college education, or even make major renovations or additions to the home.

In short, the difference that a 1% increase in mortgage rates makes could add up to tens of thousands of dollars in savings over the life of a 30-year loan term. By doing some simple math, it’s easy to find out if purchasing a home, refinancing a property, or pausing to work on your credit score is the right financial option for you.

If you are ready to take the next step in your Mortgage journey, Message me or Schedule your call today: https://calendly.com/beatawojtalik/30min

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