Interest rates are an integral factor in purchasing a home. They determine how much house a buyer can afford. Low interest rates not only give purchasers a lower monthly payment, but they also yield higher savings over the total span of the loan. Take a look at the scenario below.
Owners should also consider the overall cost of the loan when determining if it is the right time to refinance an existing mortgage — a drop of 1% in interest rate results in some surprising savings.
Many experts are predicting that these historic low rates should prevail through the end of 2021.