The uncertainty of the economy is causing drastic changes in the price of goods and services across the board. But some price drops could benefit the average consumer, especially homeowners, and those looking to buy.
A couple of weeks ago, the interest rate on a 30-year fixed mortgage hit an all-time low at 2.75 percent. Before this month, the previous low was quite a bit higher at 3.25 percent.
While the interest rate has climbed back up some, banking experts say it’s fluctuating in a lower than normal range.
American Bank Center Mortgage Banking Officer Josh Blikre says lower interest rates make it easier to lessen the price tag on your current mortgage payments if you refinance.
Once you refinance, he says the much lower rate may even make it possible for you to pay a little more each month, cutting down that 30 years.
“Let’s say you took out a 30-year mortgage today…let’s say your payment was $1,200, and you paid $100 extra per month. You’re going to change that 30-year mortgage into a 25-year mortgage. So, just by paying a little bit more every month, you’re going to cut, like I said, about five years off of the life of that loan,” Blikre added.
He says, right now, it’s a buyer’s market in North Dakota.