Today you can lock in a 15-year mortgage at 2.875%. That is almost an entire percent down from last year. And even last year was considered historically low! You can play with a mortgage calculator and find that between the equity you have in your current house and the extremely low interest rate… it is possible to trade up houses without a higher monthly payment.
For example: if you had a $200,000 loan at 6% with no down-payment. Your monthly payment would be roughly $1532.
Lets say 5 years have passed and you never paid extra on your mortgage. You now owe $186,108 on your loan and the value of your house has gone up. You could likely pay 10% down on your next loan of $270,000 at 3.625% and only pay $26 more a month than before.
Play with the calculator to see what you can now afford with today’s low interest rate!
[mortgage interest_rate=”3.625″ mortgage_term=”30″]