Real Estate News
Record Low Interest Rates!
With the passing of the $8000 tax credit deadline some buyers may feel they have missed their opportunity to save big on a home purchase but the current record low interest rates tells a different story. There are currently rates as low as 4-5% available on home purchases and that means incredible savings over the life of a typical mortgage. For example:
A buyer purchases a home and takes out a $100,000 mortgage for 30 years.
RATE: 4% 5% 6% 7% 8%
Payment: $477.41 $536.82 $599.55 $665.30 $733.76
While the interest rate difference between 4% and 8% does not look that big at first glance, it is huge when you figure the difference in payments. The 4% buyer will save $256.35 per month because of their lower rate. Over 30 years that is a whopping savings of $92,288! A lot better deal than getting an $8000 tax credit at say 8% interest.
These low interest rates cannot stay low forever so now is a great time to buy a home and save BIG over the long haul. |
|
|
