Bank Loan Interest Rates for Home Loans
Hello Hampton Roads,
Let's talk about bank loan interest rates for home loans! Interest rates are at historic lows and according to Bankrate.com , rates currently sit at 4.50% for a 30 year fixed mortgage. Rates this low provide us with the ability to buy more house with the same income—it's almost like getting a raise if you are in the home buying market!
Here is a quick example:
Lets compare today's rate of 4.50% for a 30 fixed loan, with that of a 6.5% rate (a rate which many of us were more than happy to have—maybe some of you remember the 10% plus rates a few decades ago!) for a $176,900 mortgage. The $176,900.00 amount is used because it is the national median sales priced home in the U.S.
At 6.5%, your monthly mortgage payment of principal and interest (not including taxes and insurance) would be $1,018.13.
At 4.5%, your payment would be $896.33! That is a difference of $121.80 a month or $1,461.60 a year! Or put another way if you can afford a payment of $1018.13 for principal and interest this is like buying a home priced at about $200,000.00.
Who would have thought that the biggest housing crash in history would coincide with the lowest interest rates for home loans?
If you need to buy a home now may be the perfect time to do so and get the biggest bang for your buck! It may be time to consider buying a new home while these low interest rates allow you to buy more house than perhaps you thought possible. However, don't buy to speculate on housing prices hitting a meteoric rise like they did prior to the housing bubble. Prices are likely to remain flat in the near future.
Thanks for Reading,
_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.
Let's talk about bank loan interest rates for home loans! Interest rates are at historic lows and according to Bankrate.com , rates currently sit at 4.50% for a 30 year fixed mortgage. Rates this low provide us with the ability to buy more house with the same income—it's almost like getting a raise if you are in the home buying market!
Here is a quick example:
Lets compare today's rate of 4.50% for a 30 fixed loan, with that of a 6.5% rate (a rate which many of us were more than happy to have—maybe some of you remember the 10% plus rates a few decades ago!) for a $176,900 mortgage. The $176,900.00 amount is used because it is the national median sales priced home in the U.S.
At 6.5%, your monthly mortgage payment of principal and interest (not including taxes and insurance) would be $1,018.13.
At 4.5%, your payment would be $896.33! That is a difference of $121.80 a month or $1,461.60 a year! Or put another way if you can afford a payment of $1018.13 for principal and interest this is like buying a home priced at about $200,000.00.
Who would have thought that the biggest housing crash in history would coincide with the lowest interest rates for home loans?
If you need to buy a home now may be the perfect time to do so and get the biggest bang for your buck! It may be time to consider buying a new home while these low interest rates allow you to buy more house than perhaps you thought possible. However, don't buy to speculate on housing prices hitting a meteoric rise like they did prior to the housing bubble. Prices are likely to remain flat in the near future.
Thanks for Reading,
_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.
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