There have been a lot of ideas passed around on how to breathe life into the real estate market and many new laws enacted to try and do the same. We have passed a $7500 tax credit for first time home buyers. We have increased loan limits on FHA and Jumbo loans. But none of it has seemed to work. Home sales in most markets have not shown any increase and the foreclosure rate is still rising.

So what if interest rate were to sink to 4.5%? Would that spur your interest in buying a home? Many pundits are asking the Treasury Department to enact a plan to do just that. They want the Treasury to purchase enough mortgage backed securities to effectively lower interest rates down to 4.5%.  So the question is would 4.5% interest rates change your mind about purchasing a home?

Let take a look at the current rate today of 5.5% and compare. A 200,000 mortgage at 5.5% would be $1135 a month for principal & interest. At 4.5% it would be $1013 a $122 per month savings or $1464 per year in savings. Over the life of a 30 year loan that would be $43,900 in savings. Is it enough to bring a hesitant buyer into the market?

I want to know what you think? Would lowering interest rates to 4.5% change your mind about purchasing a home?

What about the additional $7500 tax credit? Would that change your mind?

Interested?

Click Here to get Started

Copyright 2008 The Russell Home Team www.SearchjocoHomes.com 913-681-1383