Lock in the 10% Discount on the Home You Want to Own Today.

 

Jason is purchasing a new home for $200,000. Jason is using an FHA loan to buy the home, and is putting down the minimum 3.5%. He is getting an interest rate at 5.5%*. Jason’s monthly payment, excluding taxes, insurance, and MI would be $1,115.70. That is a good payment, and manageable for most people.

Let’s say that Jason waited until early next year to make that purchase. If interest rates edge up to 6.5%* (still a great rate), his payment would increase to $1,242.01 per month. Sure, that doesn’t seem like that much of an increase…only $127 per month but over the life of the loan that adds up to well over $45,000.

Now, let’s assume that Jason was comfortable with that payment of $1,242. How much more home could he have purchased? He could have purchased a $220,000 home for just $7 more per month had he locked in these historically low interest rates.

If the $8,000 tax credit was not enough to motivate you to purchase your home now, the additional discount you can lock in now due to our historically low rates makes buying your home today imperative. Please feel free to call for further information.

*Rates quoted in this article are for example only and may not be indicative of rates in today’s market, nor of rates in future markets. The movement of rates cannot be accurately predicted, and the contents of this article are not to be relied upon as proof that rates will increase, rather, the purpose of this article is to illustrate the affect of a 1% move on interest rate in the affordability of a home.