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What Low Mortgage Interest Rates Mean for Your New Home

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The first step in the homebuyer process is to speak with your lender about the home you're thinking of buying, your family's financial situation, and what your final payment will be.

Mortgage interest rates are once again making news for hitting a historic low, with many lenders able to offer rates under 3% for 30-year mortgages! Folks shopping for new homes in and around Austin, Texas know that low mortgage interest rates make your next home – or first home – infinitely more affordable than it might otherwise be. You’ll have lower monthly payments and more shopping options since you get more bang for your home-buying buck.

Low mortgage interest rates create a “buyer’s market” for new homes and make now a prime time to buy. Why are rates so low right now? Mortgage rates are influenced by a number of factors, but one big one is that the Federal Reserve has kept its interest rates at nearly 0%, and Fed policymakers have recently indicated that they don’t see key interest rates going up in the immediate future.

The short of it is, these historically low mortgage interest rates make it the perfect time to invest in that new home you’ve been wanting for your family. But there are even more benefits to low-interest rates that many homebuyers may not have considered.

The Top 7 Benefits of Lower Interest Rates:

  1. For starters, when you buy your home with historically low mortgage interest rates, you can lock in those rates for the life of your loan (unless you choose to refinance later), which provides long-term benefits for you and your family.
  2. 2. When you purchase a new home when interest rates are low, your monthly payment will be less, adding more money to your bottom line.
  3. Right now, mortgage interest rates are the lowest they’ve been in years, so it pays to take advantage!
  4. You can choose a fixed-rate mortgage, rather than an adjustable-rate mortgage. While rates on adjustable-rate mortgages are typically lower to start, those rates are not locked in, which can mean trouble down the road. Fortunately, with interest rates so low right now, you can have your cake and eat it, too!
  5. The interest rate isn’t just good for your pocketbook today. Low mortgage interest rates help the housing market to stay stable, meaning that you know you’re getting a good investment when you buy.
  6. Because you’ll have a lower monthly payment, your family will be able to invest more and save more each month, which helps you to prepare for all the things you want to do in the future.
  7. For those looking to buy a second home – say a winter home in a warmer climate or a home that’s nearer to family members – low mortgage rates make affording a second home a whole lot easier.

Want to know what your monthly payment on a new home would be, given these historically low-interest rates?

You can simply punch in a few numbers and quickly estimate your monthly payment with help from our handy mortgage calculator, conveniently located on the listing page for any new home at Santa Rita Ranch. All you need to do is enter the amount you’ll be borrowing, the term of the mortgage, and the current interest rate and you’ll be on your way. Want to know more? Click here to read an informative article on how best to calculate your mortgage payment and what you’ll need to get started.

How to capitalize on historic low mortgage interest rates.

If you’re looking for new homes in the Austin, Texas area, you may want to browse the new home offerings at Santa Rita Ranch, for starters. The Ranch is a three-time-award-winning master-planned community located along the major growth corridor stretching from Travis to Williamson Counties. With new homes priced from the $200s and built by some of the most respected home builders in the country, you can find a perfect home for any family or lifestyle in our beautiful gated community.

Whether you’re looking for starter homes for a new family, Cottage Homes, Garden Homes, Estate Homes, or a selection of gorgeous “lock and leave” homes featuring yard maintenance that’s included in your HOA dues, you can find what you’re looking for at Santa Rita Ranch, all nestled into the breathtaking surroundings of the Texas Hill Country.

The first step in the homebuyer process is to speak with your lender about the home you’re thinking of buying, your family’s financial situation, and what your final payment will be.

 

Disclaimer:

The mortgage calculators provided herein are third-party providers and Santa Rita Ranch nor our, builders are making or providing any representations and/or warranties regarding the accuracy or the results generated by such mortgage calculators.  The information and/or results generated by the mortgage calculators is for illustrative purposes only and is not an affirmation or representation that such information or results are applicable to you. The results shown are hypothetical and may not be applicable to your individual situation or the situation for which you are using the mortgage calculators. You should always consult a mortgage professional prior to relying on the results generated by these mortgage calculators. The calculated results are intended for illustrative purposes only and accuracy is not guaranteed.