Over the past year interest rates on
home mortgages have continued to
decline. Who would have thought
rates would ever reach the 7% level?
Amazingly, rates have continued to
decline even below that record low.
The benefits to would-be home
buyers are awesome. Low rates
produce lower monthly payments -
that’s obvious. What’s more, they
provide the ability to afford more
house than before.
Consider the opportunity this
presents. A buyer qualified to
purchase a home with $1,100
payments (after a 20% downpayment)
could select from homes
priced close to $230,000. Not too long
ago, with 8% interest rates, the same
buyer would have to settle for a
home in the $187,500 range.
At 8% rates, a family qualified to
purchase a home with $900 per
month payments could not purchase
a home priced at $187,500, but would
have been limited to about $153,000.
Today, that $900 payment would
allow the buyer to upgrade to a
home valued at $187,500.
Not sure where you fit into the price
picture? Begin by meeting with a
mortgage lender, and ask to be
qualified. The result can give you the
confidence to proceed with your
home buying plans.
We are fast approaching the lower
limit on these record rates. When
rates increase, home buying
opportunities will decrease
proportionately. Where will decrease
proportionately. Where will you be
living when they do? Buy now - feel
good later!
