Why having a low interest rate a BIG deal!

Why a low interest rate is a BIG deal.  Interest rates are a subject of discussion when opening an type of line of credit, regardless if it is a credit card, auto loan and definately when it comes to buying the most expensive asset in your life, a home.  The overly simplified chart above is an illustration of what the difference would be in the Principlan and Interest payment of a mortgage of $100,000.  Calculate the savings over a 30 years and you will find the savings is considerable.  With today's interest rates so low, a lot of people are comparing our housing market to 2003's market, as prices of houses are roughly the same! But there is one big difference! Because when someone tells you home prices are back at 2003 levels, you can tell them "Yes that is true, but the COST of a home is now 28% cheaper today than 2003". Based upon the above illustration, the monthly payment per $100k borrowed today compared to 2003, the payment today is only $443, versus $609 in 2003, which is 28% less! So the "Cost" to buy a home today is 28% less than 2003! That is why having a low interest rate is a BIG deal!

If you could buy that designer purse, SUV or hybrid at 28% off, wouldn't you?  Give me a call today to discuss the home buying process, so that you can become prequalified and take advantage of the historically low interest rates...they will not last forever!