Should I Invest or Pay Down My Debt?

If you are living paycheck to paycheck and have very little money left over you may be in the position of choosing whether to invest and save your extra money or to focus your efforts on paying down debt.

If you can choose only one option, it may actually be wiser and more cost effective in the long run to pay down your existing debt.

The ideal financial situation

In a perfect world, you would be able to invest your money into a fund that would guarantee a 15% rate of return while you had a low 2%financing charge on your credit card. With that scenario, it would make sense to save instead of paying down debt as the money you saved would earn substantially more money then the amount of interest you would be paying out. However, the reality is just the opposite.

Why paying down debt is better

Credit card companies are in the position of finding alternative ways of generating more revenue as consumer spending is down (reducing the fees they collect allowing a business to accept their credit cards) and default on payments are increased.

The credit card company are filling that budget gap to raising the interest rates they charge to their customers to unspeakable highs. Combine that reality with the fact that interest rates are at their lowest point ever, thus finding a high return savings account or CD is extremely challenging during this time.

Over the long run, the amount of interest you can be charged on your debt can mitigate any savings you manage to accrue at this time. Your number one goal should be to pay down the debt with the highest interest rates, so you stop putting good money after bad.

If you have a credit card interest rate of 20% and a savings account interest rate of only 2%, simple arithmetic will prove the value of paying down debt over investing.

Chapel Hill Mortgage Rates

Chapel Hill is a wonderful place to live, mixing small-town charm with the intellectual excitement of one of the nation’s foremost universities. If you’re thinking of moving here, Chapel Hill Banking Rates could help you find a variety of mortgage rates for you to choose from. Moving to a new city should be exciting, not stressful.

If you’re already a Chapel Hill homeowner we could help you find the refinance rates you’ve been hunting for. Find out how Chapel Hill Banking Rates could help you today.

Compare Rates of Chapel Hill, NC Mortgage Lenders

As compared to the past 30 years, current mortgage rates are at historic lows, but always talk with multiple home loan lenders to learn what interest rates are available to you. Mortgage Interest rates change on a daily basis and working with the best lenders will help you know when to take advantage of the lowest rates available for you.

Chapel Hill Banking Rates can connect you with right mortgage lenders that will offer you the best rates based on your current credit score. If you are looking for a local Chapel Hill mortgage lender, send us your information today and we will help you compare rates.

Chapel Hill, NC Mortgage Rates and Your Credit Score

Your credit report and credit score will greatly affect your ability to get a home loan in Chapel Hill as well as get a low mortgage rate. With so many changes in the Mortgage Industry, banks and mortgage companies have a more difficult time getting money or credit to help borrowers with low credit scores. If you have a low credit score, especially lower than 600, you may want to quickly get a copy of your credit report and see where you can improve your score. You can do this yourself, or look to Credit Improvement companies who will legally help you remove old accounts, mistakes, and other problems off your credit report and help you increase your credit scores.

• For a Free Credit Report, we recommend you visit GoFreeCredit.com
• For help with improving your Credit Score, you can visit GoLookOnline.com

Types of Mortgage Loans

There are many types of mortgage loans. Whether Chapel Hill, NC homeownership is a dream youre working toward, or youre looking to add to your property investments, Chapel Hill Banking Rates can help you find the best mortgage rates. The most popular types of mortgages are:

• Fixed Rate Mortgages
• Adjustable Rate Mortgages (ARMs)
• Refinance Mortgages

No matter what type of mortgage seek, we connect you with lenders who offer adjustable rate mortgages or fixed rate mortgages, and if youre looking to refinance you Chapel Hill, NC mortgage loan, we can help you, too.

Interest Rates in Chapel Hill, SC

One of the most confusing aspects of Mortgage rates is understanding the difference between an advertised Interest Rate and the APR, or annual percentage rate. The APR is the actual interest rate that you will pay on a mortgage loan including fees. This makes it easier to compare rates that do not have fees with rates that may include fees or points. The APR was intended to make this comparison simpler, but instead, it often adds to the confusion. Just keep in mind, that the Annual Percentage Rate is likely to be different than the advertised mortgage rate because of the additional fees.

The overall range of mortgage rates are determined by the interest rate Mortgage Bonds or Mortgage Backed Securities. Mortgage rates are based on long-term investment strategies. The supply and demand of the Mortgage Bonds and Securities are the strongest factor for influencing the overall range of the rates. The lower the demand, the higher the supply and the lower the rates.

Search for Mortgage Rates in Chapel Hill.