Interest rates have everyone talking - how high are they, how do they affect me, what is the best rate, etc:
- For most home loans they are currently very good. Today the rate is about 6.25% for a qualified first time home buyer purchasing a home in the $100,000-$150,000 range. Although rates are fluctuating more rapidly than in the past several years (possibly .25 point per day or more), they are still historically very low.
- The lending rates affect all buyers. For example compare the difference when borrowing $100,000 at 6% vs 6.5% on a 30-year fixed loan. The seemingly small .5-point difference could amount to over $11,500 over the life of the loan!
- The best rate is very personal. Interest rates are calculated individually using many criteria. That is why it is vital to work with a qualified mortgage lender who can help secure the best rate and program for a buyer's needs.
So don't listen to the chatter about rates. Become an informed buyer so that your home puchase will make dollars & sense!