“If you are planning to buy a home in the next year, it’s better to do it sooner rather than later,” Frank Nothaft, Freddie Mac’s chief economist, said in a recent video commentary. With 30-year mortgages dipping below 4%, buyers are in a strong position to afford more home than they could 10 years ago.
Think of it this way, the difference between a 30-year mortgage on a $200,000 home at 7% and one at 4% translates to an additional mortgage payment of $375 per month! If you equate that to purchasing power, you could afford an additional $65,000 at a 4% interest rate. There is quite a difference between a $200,000 house and a $265,000 house in today’s market!
The difference in interest that you would pay over the 30-year mortgage is staggering, as well. Financing at 4% would save you $135,000 over the life of the loan. Imagine what that amount of cash would do for your retirement!
Buying a home can take a lot of courage. Teaming up with the right Realtor and loan officer will help you make the most of the experience. Let us help you make the transaction as comfortable as possible, while getting you the best deal possible, today!
