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Whether your looking to lower your payment consolidate debt or purchase a new home the interest rate is a primary factor in your ability to accomplish your goals.
On purchase transactions lower interest rates mean you are able to afford more of a home. You may be looking for a larger home and trying to upgrade your current situation without to much increase in your current payment.
On refinancing transactions the interest rate affects many parts of this type of transaction. For example:
If there is equity in your home and you have accrued some debt. Many times you are able to roll the debt into your home and keep your payment close to the same monthly payment you have now. What better way to avoid higher credit card rates and additional late fees for your payment posting one day late. If you have closing costs and a balloon payment you are in trouble!