I just wanted to let everyone know that Interest rates today are as low as 4.5% on a 30 year fixed loan. There are a lot of buyers out there bummed out that they didn't or couldn't take advantage of the $8000 first time home buyers tax credit. I got to thinking and did some calculations that confirmed my thoughts.
The current low interest rates will actually save you much more than the $8000 hundreds of thousands of americans received this year. Look at it like this.
Most buyers who took advantage of the tax credit received between a 5.3 and 5.5% rate of interest. If you pay interest on a loan amount of $150,000 over 30 years the home buyer today getting the low rate of 4.5% will save $37,000 in interest over the buyer who received the $8000 tax credit with an interest rate of 5.5%. And yes, I did subtract that $8000. We all have that friend who loves to brag about how they got $8000 in free money to buy a house. Next time they bring it up, ask them what their interest rate was. odds are it was not 4.5%.
Smart buyers know that these interest rates are a great incentive to buyers. And, best of all you don't have to be a first time buyer to take advantage.
If you are in the market for a home, or even just thinking about it let me know. I would be honored to walk you through this process.
Brian Eddins
Realtor, e-Pro
405-887-7000
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