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Look Online for Best Mortgage Rates to Maximize Foreclosure Purchase
Purchasing a foreclosed home can definitely be a bargain for the right buyer. But to really maximize their savings, Informa Research Services advises homebuyers look online to find the best deal to finance their home purchase.
Sliding home values (and prices) and rising foreclosures mean possible affordability for first-time home buyers. Foreclosures made up 41 percent of California’s total home sales in the second quarter (approximately April through June) of this year, according to Business Week.
Even if you find a great price on a home, you should research available mortgage rates to ensure you also get a great rate on your loan.
Shopping for loan rates online can help you find the best deal to finance your home purchase. For instance, getting the national average rate of 6.68% on a 30-year fixed loan (according to Informa Research Services’ Interest Rate Review®) instead of the national high of 8.08% can amount to savings of over $200 a month (on a $300,000 loan). If you put this saved amount toward extra payments on your loan, you could pay off your loan more than 7 years early and save over $130,000 in interest. To calculate your potential savings, use custom mortgage payment calculators such as those on BankRate.com.
Finding a good rate to finance your home purchase will make your “home, sweet home” even sweeter.