Locking in a mortgage rate today won't be the same as it was a year ago when rates stood at a 40-year low, but mortgage seekers are still getting a very attractive mortgage interest rate. With the Federal Reserve Board hiking interest rates up there hasn't been a better time to find that dream home that you have been wanting, and get into a fixed rate mortgage with a low interest rate. It is no secret that interest rates can not and will not stay at the low rates that we have seen them over the last couple of years, but a 30 year fixed rate mortgage should stay between 6 and 7 percent for the remainder of the year. Rates are going up because the economy is strengthening but we aren't likely to see a big jump in interest rates all at once.
When choosing your mortgage there are several different payment frequency options that should be looked at when you are considering a home mortgage. There are basically 2 payment options that you can use. There is the monthly payment option or there is the bi-weekly payment option. To compare which payment frequency option is right for you, go to monthly payment vs. bi-weekly payment.
The calculator below is the bi-weekly mortgage payment calculator. This calculator figures your bi-weekly mortgage payment. The bi-weekly mortgage payment, which is an optional payment option that you usually have to request, would require you to make (1) half payment every (2) weeks for a total of 26 payments a year. This equals out to an extra payment being made each year which usually goes directly to the principal and can cut a 30 year loan down to a little over 23 years. There are a lot of companies that will set up a bi-weekly payment option. Most generally there is a set up fee but that small set up fee will literally save you thousands of dollars in interest. This calculator will also show you a amortization table so you can see exactly were you stand in your mortgage at any give time.
In short, shopping around for the right home and getting the lowest possible interest rate is very important. It is important to find the right home and loan to match your budget. Finding the right home mortgage with a low interest rate will lower your overall monthly payment and could save you thousands of dollars in interest over the life of the home mortgage loan. Use our calculator to figure out your estimated bi-weekly payment in advance by estimating your loan amount, interest rate, and length of mortgage.
