Interest rates are at historically low levels. That means it’s a great time to borrow if you are looking to make a big purchase or refinance existing debt. Today’s incredible interest rates can be a useful tool to help you save money and possibly even establish a reliable income stream.
Consider these three ways you can use them to put a little extra money in your pocket at the end of the month.
1. Generate a Passive Income
There is undoubtedly a housing crisis going on. Million of people are facing homelessness. That doesn’t mean there aren’t;t properties available to purchase, though, and low-rate loans can make it a reality for you. Even if you don’t know the first thing about how to invest in real estate, you can learn and then use that knowledge to generate a steady income.
2. Lower Your Mortgage Payment
If you purchased a home in the past several years, you are probably paying too much in mortgage interest right now. Thirty-year mortgages are hovering around 3%, with lower options for shorter terms or special programs like VA-backed loans.
Even one or two percentage points can add up to sizeable savings on a mortgage, which means you can have a little extra money left over after all the bills are paid.
3. Refinance Private Student Debt
Are you one of the roughly 45 million Americans facing student loan debt? It may make sense to refinance those loans into a new, combined package at a lower interest rate. In addition to lowering your payment, refinancing also streamlines the payment process.
Keep in mind that your ability to apply for special deferments and forbearance may be affected by refinancing, so talk to a student loan counselor before you make any decision.
The economy has definitely seen brighter times. However, you can take advantage of low interest rates to help save money and, in some cases, actually earn a nice income.
