This week we are ending and about to begin a new era as a new president will be elected Tuesday, November 4, 2008. As talk continues about how bad the economy is one thing remains--people need money!
In 1976, the year of the Bicentennial Celebration, mortgage rates averaged a whopping 8.87% for the year for a thirty year fixed rate mortgage (www.freddiemac.com). It was an era of new optimism, a new point in history, and an election year.
As we move forward in time interest rates hit some of their highest points in history before 1984. In 1984 they averaged a mere 13.88% (www.freddiemac.com). Now, how many of you would want to pay that today?
Our economy is suffering. Life though involves suffering and change. Keep this in mind when you think of where we are today. Average rates today are just over 6.46% (www.freddiemac.com) throughout
the U.S. Money is available to borrow! Lets' encourage each other and our clients on the positives of home ownership down the road. I do realize that many of us do not "realize" those benefits today.
- Long term wealth
- The American Dream
- Sense of fulfillment
- Tax Benefits
I am including rate snapshots and examples which show the cost of money is far cheaper today than in many election years previously.
Year Rate Loan Amount
1976 8.87% @ $100,000=$795.29 monthly (before tax/insurance)
1980 13.74% @ $100,000=$1,164.32 monthly (before tax/insurance)
1984 13.88% @ $100,000=$1,175.38 monthly (before tax/insurance)
.... (progress forward)
2000 8.05% @ $100,000=$737.25 monthly (before tax/insurance)
2004 5.84% @ $100,000=$589.30 monthly (before tax/insurance)
2008 6.46% @ $100,000=$629.44 monthly (before tax/insurance)
In 2008, today is a great day to be in this business while serving and guiding clients throughout the lending process.
*image complement of www.flickr.com
*rate information complements of www.freddiemac.com
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