If you still want to take advantage of some of the lowest mortgage rates in history, now may be the best time to make a move on your new Denver home because the rates won't last. According to Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates are continuing to follow long-term Treasury yields higher. This marks the third straight week of fixed mortgage rates moving higher.
What does this mean in your quest for the perfect Denver area home? Essentially time is money. With rising home sale prices in metro Denver continuing to outpace both the West region and the national average, waiting could be costly (according to a home price index report by Clear Capital, up 3.6% in the last quarter alone). Consider these thoughts:
-30-year fixed-rate mortgages (FRM) averaged 3.62 percent for the week ending August 16,2012, up from last week when it averaged 3.59 percent. Last year at thistime, the 30-year FRMaveraged 4.15 percent.
-As an example, a mortgage of $165,000 for 30 years at 3.62% would equal a principal and interest payment of $752.02, but if you wait and rates continue to rise at the current pace within 6 months to a rate of 4.12%, your payment would be $47.17 higher. Buying at the lowerinterest rate would save you approximately $16,981.00 over 30 years.
-With Denver area home prices currently rising at a pace of 3.6% per quarter, waiting 6 monthscould cause the amount you need to borrow to also rise by 7.2% to $176,880.00. This would result in a payment of approximately $856.73 per month or $104.71 per month higher than attoday's property prices and 30 year mortgage rates.
-For this example, the total approximate amount you could save by buying at today's lower prices and mortgage rates over 30 years would be $37,695.60 on the mortgage and $11,880.00 on the price of the home-for a total of $49,575.60.
Take advantage of this buying opportunity! Let the professionals at the Bandy Team help you buy or sell your Denver home. Contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Stapleton, including homes in Washington Park and real estate in Cherry Hills.
Until next time,