It's all about monthly payments...
When I started in real estate in the mid-90’s interest rates were pretty stable, fluctuating between 7 and 8%. Real estate agents and mortgage lenders thought those rates were GREAT. Apparently buyers and sellers did too, since home owners were selling and buyers were buying. Well, guess what – interest rates are now PHENOMINAL!! I just saw a posted rate of 5%, which is actually up a tic from the 4.875% I noted last week. Oh my gosh! Over the last 10 years I have refinanced my home 3 TIMES to get my current rate ….Now you can buy a home for a still lower rate. What does that mean? It’s all about monthly payments.
Suppose you fall in love with a home for $250,000. For simplicity’s sake, you can afford the traditional 20% down, and have a good credit rating (KEY to qualify for the best rates).
*Note – only loan principle and interest are included in payment information above.
The difference in monthly payments is disposable income! Money to spend on vacations, a new car…….whatever! It can mean that you qualify to buy more house – either in size, features or location - than you will be able to when rates increase again to 7-8%. If you are selling your home now, this difference in monthly payments means more buyers qualify to buy your home. A definite plus on both sides!
If you need more evidence that this can be a good market for buyers and sellers, check out my previous blog, Building wealth the real estate way.
Posted By:
Cathy Butschke
