How long will Interest Rates Stay Down?

Have you had the chance to view Interest Rates lately? Currently they're hovering at the 4.35% - 4.5% range, not too bad! That said at this time last year they were closer to the 3.35%, most people won't blink, but that one percent difference can really add up! 

• On your standard $100,000 FHA loan @ 4.5% percent, you would probably be paying around 750.00 - 800.00 dollars a month with taxes at 3,500.00 dollars. 
• That same loan one year ago at 3.5% would cost your client only 720.00 - 750.00 dollars. In most cases that's a 30 - 50 dollar difference month.
• It doesn't seem like much when you think about it now, but over course of the loan it will add up! Let alone the fact that would save your client 360.00 - 600.00 dollars a year! 
• That same loan last year at 3.5% percent will end up costing your client almost 20,000 dollars interest! Yes that's TWENTY THOUSAND DOLLARS!!! Do the math, thats a brand new Toyota Coralla FULLY LOADED!!!

Not every person thinks about the long haul, if rates continue to climb, and any Economist will say that they will. You stand to save even more! Think about the cost to you in a year if rates are at 6%. Right now you can afford more home, because when you factor in the extra 1.5% percent that same loan today at 4.5% percent now will cost you almost 45,000 dollars more over the course of 30 years! That's the cost a C Class Mercedes, that's a lot of money!

If you think about that, it really should light a fire if you're thinking about buying a home. Rates will stay lower for the next few months, but at some point the Federal Reserve has to counteract Inflation. With all the money the Fed has put into our economy, at some point they have to begin raising rates! Get in now while you can afford more home, and save more MONEY!

If you're looking in the Buffalo area then contact me!

craigwheelerhomes.com