This past June, the Federal Reserve Bank raised interest rates by 0.75% in an attempt to quell the sky-high inflation plaguing our nation. This is the largest single rate increase in 28 years and will have a ripple effect on potential homebuyers seeking mortgages. This change can add tens of thousands of dollars in additional interest costs over the life of a mortgage. If you are starting the mortgage application process, you may be wondering if there is anything you can do to avoid paying this extra interest. While you can’t bring interest rates back down to last year’s levels, something you can do is purchase your home with a larger down payment.
The larger your down payment, the lower your mortgage will need to be, and the lower your interest payments will be. Additionally, a larger down payment increases the likelihood of your mortgage lender giving you a preferred interest rate since larger down payments are associated with less risk for the lender. The ideal situation is to have at least a 20% down payment. Even if 20% down is unattainable for you, the closer you can come to it, the better.
Your Choice Mortgage Group loan originator can advise you on all your options for minimizing the amount of interest that you owe on your mortgage. Contact us today at (561) 395-6900 to learn more.
Since 1995, Choice Mortgage Group has been providing homeowners with the best real estate financing programs available. As a licensed lender, we offer a wide variety of services and programs that satisfy the unique needs of each of our clients.
Specializing in residential mortgage lending for over 25 years, our programs include conventional and government lending, purchases, and refinances. We also offer portfolio lending for self-employed borrowers and borrowers with complicated tax situations. South Florida is where Choice Mortgage Group started, and we like to call it home. We are devoted Florida Atlantic University Owls fans and are proud to be the official mortgage lender of FAU Athletics. We also support numerous other local organizations. For more information about Choice Mortgage Group, visit www.choicemortgage.com.
Choice Mortgage Group
2424 N Federal Hwy, Suite 100
Boca Raton, FL 33431
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