Mortgage Interest Rates are still low

Yes, people in the real estate industry have been talking about raising interest rates for years now.  Let's face it - who knew that rates would have remained this low for this long.

I bought my 1st home in the 90s with 8.75% interest rate and thought that was great.   I re-fied my 1st condo in Washington DC down to 5% from 6.5% and was excited.  When rates dropped even lower - I sold and bought something bigger.  That was over 4 years ago and rates have jumped (well maybe you should call it a hop) around; but are even a little lower now.  Who knew?!

Experts (myself included) have warned that rates will increase.  Well they will - I promise.  Someday.

According to news from the FED and all the experts and pundits - it sounds like rates will remain close to where they are until September.  Maybe?  But with world events and our economy so tied together - who knows really?

I think the overall good news is this: rates are CRAZY LOW.  Take advantage of this now.

Don't want to move for a few years?  Have you thought of buying that retirement home now?  Prices are still low in 2nd home/vacation home spots - rates are low; buy it now and rent it out for a few years until you are ready to move in yourself!

keys and money

THINK ABOUT THE MATH

Loan $400k    @ 4%  =  $1909.66 a month

same Loan       @ 5% =  $2147.29 a month

oh and that "GREAT" rate I had in 1995?  @8.75% = $3146.80

I couldn't afford my current home at that rate!   Be smart in your long-term planning !

 

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Contact James Downing of the MetroDCHouses Team, if you are selling, buying or have questions!

Office: 202-469-6778   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

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Comments (1)

Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I was looking for your current blogs. I hope all is going well for you.

Apr 23, 2016 11:34 AM

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