Right now, you can get a 15-year fixed-rate loan for around 3%.
That’s on par with the current annual inflation rate of 2.9%.
Inflation is generally a bad thing--it erodes the value of your money. It means that what you can buy with a dollar today you won’t be able to buy with a dollar next year--it will cost you $1.03. The year after that, it will cost you $1.06. In ten years, assuming a steady rate 3% rate of inflation, it will cost you $1.35.
But if you have a fixed-rate mortgage, inflation has a benefit: while the prices of everything else are rising, your mortgage payment stays the same.
But it will feel like it’s shrinking.
That’s bad news for your lender, but it’s good news for you.
Learn more about current mortgage interest rates and your different fixed-rate loan options in my latest story for Interest.com, Record-low mortgage rates will put a spring in your step.