Rates are ridiculously low across the board. From auto loans to home loans – we’ve never seen anything like this. But what goes up must come down… err… I suppose it is opposite in this situation. What has gone down surely will rise up – we just don’t know when. So how can YOU use these low rates to your best advantage? Read on, my friends.
With the help of this article, here are some ideas on how you can be a smart borrower:
1) Buy a home or rental property. Long-term mortgage loan rates are the lowest they’ve been in decades. With the combination of low home prices (hello, Buyer’s Market!) and low rates, you definitely shouldn’t put off purchasing that house. (Click here to check out our mortgage website!)
2) Refinance your home. If your current rate is 4.00% Annual Percent Yield or above, you definitely need to consider refinancing. We are seeing a lot of people who have 30 year mortgage loans be able to refinance to a 15 year loan for a similar monthly payment (this, of course, all depends on your credit score, equity in your home, and rate you are able to lock into). Not sure if your situation would work for a refi? One of our helpful mortgage loan officers can usually tell you pretty quickly over the phone. Just call (319)378-0101 ext. 3.
3) Buy a car. Auto rates are incredibly low. Depending on what rate you qualify for, you might be able to get into a new car and barely have to pay interest. It’s like you’re borrowing money for a miniscule cost! Click here to see our current auto rates.
4) Refinance your car. Did you know you could even do this? Say you bought your car and, for one reason or another, ended up with a higher rate. Well, guess what? You don’t necessary have to be stuck with that same nasty rate for the life of your loan. See if you can refi and lower your monthly payments.
5) Lock in student loan rates. Although federal rates are typically low, they have also dropped slightly recently. If you have more than one outstanding student loan, it might be worth calling your loan provider to see if you can consolidate and lock in a lower rate.
6) Pay off credit card debt. We’ve seen rates drop on mortgages and auto loans, but credit cards seem to have gone the opposite direction – except ours – we haven’t changed our credit card rates in over a decade! While you work on paying down your credit card debt, why not consolidate all of it and transfer your balance over to a card with a lower interest rate, such as ours (click here).
There are so many ways that you can take advantage of these low rates! We’re here to help. Even if you’re not sure what you can do, but know you want to save money, stop on by and one of our financial counselors with happily guide you in the right money-saving direction!
Sound off in the comments below: If you had an extra $250 a month, what would you do with it?