Source: The Ascent —
While mortgage rates dropped to record lows during the pandemic, things have changed in recent months. Rates have crept up steadily and mortgage loan rates are now higher than they’ve been for many years.
With today’s mortgage rates coming in so high, financing your home will be more expensive than it would have been just a year ago. During this time of elevated rates, there are a few mortgage mistakes you absolutely cannot afford to make.
1. Choosing the wrong kind of mortgage
With interest rates rising, the stakes are higher when you choose a mortgage type.
For example, if you’re tempted by a 15-year mortgage due to the fact the rates are lower, you should be aware the shorter pay-off time means you’ll pay a lot more each month. That comes at a big opportunity cost and makes your budget less flexible.
