Infographic: What 1% Will Save You on Your Mortgage
If you are shopping for a new home, it’s equally important to shop around for the best mortgage rate, too. Rates can vary greatly between lenders and even seemingly small differences can end up saving – or costing you — a lot of money over time. Explore your options by comparing personalized mortgage rates to ensure you’re getting the right loan.
“Although the difference in monthly payment between a 4.5 percent interest rate and a 5.5 percent interest is not dramatic, your savings in interest paid over the life of the loan is significant,” said Erin Lantz, director of Zillow Mortgage Marketplace. “Mortgage rates will likely rise to 5 percent by the end of 2014 due to an improving economy and policy changes by the Federal Reserve. By buying a house while interest rates are still incredibly low, you could end up saving more than $52,000 over the course of 30 years.”