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.
Before looking for a home, it is really smart to see how much of a loan you can afford. Below you will find a calculator that is very easy to use that will figure just how much of a home mortgage loan you can afford and it will also tell you how much interest you will pay over the life of the loan. Once you know how much of a loan you can afford, than you will be ready to start shopping around for a home mortgage.
In the calculator below enter the payment amount you can afford, your monthly interest rate, how often you will make payments (monthly or bi-weekly), and how long your loan will last in years. The calculator will show you your approximate maximum loan amount and the total amount of interest you will pay over the course of your loan.
In short, shopping around for the right home and getting the lowest possible interest rate is very important, but making sure you can afford your mortgage is also 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 how much of a mortgage you can afford.
