Seeing the dollars and cents you’ll save when purchasing a home while mortgage rates are at an all time low helps. With today’s low rates it is less expensive to borrow money, therefore the savings over the life of your loan are significant. Mortgage rates have been below 3% for five weeks now, which is the longest run with the lowest rates on record. Preferred Lender Eric Kimble with HomeTown Lenders stated that a 1% change in interest rates is nearly a $40,000 difference of what consumers can afford in a house. A $150,000 mortgage in 1970 with the then average 8.86% interest rate would have had the monthly payment of $1,191. A $290,000 mortgage in 2020 now average 2.86% interest rate would be a monthly payment of $1,191. A $140,000 difference in house worth due to the interest rates. Rates are super low allowing for consumers to afford more in a home.
Now is the time to get more house with less money. Lenders are offering mortgages with a down payment as little as 5%.
Call us today to discuss the best options for your family in today’s market.