Why And How Mortgage Interest Rates Matter To Today's Home Buyers

Why And How Mortgage Interest Rates Matter To Today's

Home Buyers

 

If you're in the market to purchase a home in the forseeable future, you may want to take advantage of todays' historically low interest rates. All projections for 2015 are that mortgage rates will increase by this time next year. And if you've ever wondered how today's mortgage rates stack up against historical rates, you might really be surprised and hopefully understand why you're hearing real estate professionals keep saying now is the time to buy and that there's never been a better time to buy a home.

As the chart below shows, this month of November 2014 average interest rates of barely over 4% are 2+% lower than the average rate throughout this current decade to-date. On a $200,000 mortgage, current low rates reduce your monthly mortgage payment by some $281 per month versus the 2000's average of 6.29% For many people this $281 saving is like a car payment or a school loan payment. What it's certainly not is chump change!

 

And if you've ever wondered about the impact of interest rates on your "buying power" (in other words how much house can you afford at certain interest rates), check out the following charts provided by Keeping Current Matters on the purchasing impact for a $200,000, $400,000, $600,000 home. It's easy to see just how quickly your purchasing power drops and forces you into a less expensive home. If you are what we call a "move up" buyer this really is the time to take advantage of historically low interest rates. Wait too long and you might not be moving up as much as you wish.

 

And as real estate markets improve in many parts of the country and home prices increase at the same time, your money won't go as far as you might like when combined with higher interest rates. It's like double jeopardy. Now is the time to buy a home! Don't squander your purchasing power by waiting too long.

Now is the time to buy a home! And if you're looking for a home in the Charlotte metro area you can find all Charlotte home listings on our website: www.HomesInCharlotteArea.com.

Let Carolinas Realty Partners help you find your dream home and save you money at the same time!

Nina Hollander
Broker, Realtor, CRS, GRI, ABR, SRES, CDPE, SFR, SPS, CMRS
Carolinas Realty Partners with RE/MAX Executive Realty
Direct: 704-779-0813
Website: www.GreatHomesInCharlotte.com
Blog: www.BestCharlotteHomesForSale.com
Search for Charlotte Area Homes: www.HomesInCharlotteArea.com

2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 Charlotte Magazine 5-Star Customer Satisfaction Award Winner

 

   

 

Oh by the way, I'm never too busy for any of your referrals!