Buy a home when mortgage interest rates are low.
A low interest rates can mean more home for the money and lower monthly mortgage payments.
Reason 1: More Home For The Money:
For example, your monthly mortgage payment, excluding insurance and property taxes, with the current average interest rate of 5% would be:
$100,000 - $536.82
$150,000 - $805.23
$200,000 - $1073.64
$250,000 - $1342.05
$300,000 - $1610.4
Depending on the current rental market, this gives you a good idea how much it will cost you for a new home.
Reason 2: Lower Monthly Payment:
For example on a 30 yr. fixed mortgage with a loan balance of $100,000, here is what the monthly mortgage payment, excluding including insurance and property taxes, would be:
7.0% - $665.30
6.5% - $632.07
6.0% - $599.55
5.5% - $567.79
5.0% - $536.82
There are truly savings when you look at the average savings $60 per month when the interest rate is lowered from 6 to 5% may not seem like much savings, but over a year that is $720.
Note: The current interest rates are artificially low due to government intervention. There is no better time than now to take advantage of these historically low rates.
For more information on Buying a Home in Hanahan & Goose Creek, SC and Surrounding Areas contact Matt Naumann.
Web Link: Goose Creek & Hanahan News
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