Can you believe interest rates are still hovering near their record low level? According to Brandon Staples, loan officer at First Colony Mortgage, today’s average rate for a 30-year fixed rate conventional loan for a person with a 720 credit score is 4.125%.
What does this mean? These near-record low interest rates mean owning a home is more affordable than ever before!
How does it affect you? If you want to purchase a home for $200,000, at 4.125%, your monthly principal and interest payment will be $969. If you wait to purchase, and rates increase by only 1%, you will pay $1,089/mo, a difference of $120 each month! Over the life of your 30-year loan, you will pay over $43,000 more in interest for the same house! And, if you are purchasing a more expensive home, you will spend even more on interest! Holy Interest Rates Batman! What would you do with an extra $43,000 in your pocket?
Call me, and let’s have an in-depth conversation about how you can own a home and save money. Benjamin Franklin would approve. We all know, “a penny saved is a penny earned.”