During the COVID-19 pandemic, many things have changed. Some things have gotten much harder to deal with, but there are some other things that have changed for the better. Interest rates are at an all-time low this year, which has been monumental for many people. Here are a few things you should do to take advantage of the current low interest rates that will positively impact your family.
Savings Accounts
Even if you aren’t an avid saver now, the current low interest rates are a reason to start saving your money in a savings account. Options like a high yield savings account (accounts that offer better returns by using a higher rate) are often impacted by declining rates, meaning the rates you’ll pay will decrease and the money you save will increase. Savings accounts are one of the best options when interest rates decline.
Home Buying
If you’ve been thinking about buying a new home, or even your first home, now is the time to do so. With interest rates for a mortgage under 3% for a 30-year mortgage plan, you will see the benefits immediately. There are incredibly low interest rates today if buyers qualify. Because so many people took their houses off the market, or waited to list their homes, at the beginning of the COVID-19 pandemic, more and more people are selling now, making it the best time for you to purchase a home. In addition to making it easier to find a home, low interest rates make it easier for you to qualify for loans you may take out for your new property.
Pay Off Debt
One of the best ways to take advantage of the current low interest rates is to pay off your debts as much as possible. Now is the ideal time to pay off debts for less than you would normally. Having a low interest rate will help you to have a safety net of sorts while paying off your debt so that you’re less likely to fall short on payments. Lower interest rates mean lower costs you need to pay, so take advantage of the lower rates now while you still can.
With interest rates at a record-breaking low, now is the time to make the money choices you’ve been waiting to make. Whether that’s with your savings account or paying back student loans, there are many things that you can do to make sure that you take advantage of the current low interest rates.
For more financial advice to help you and your family, make an appointment with Mike!
