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56,512 Reasons Why NOW is a Better Time to A Buy Home- Even Without Tax Credits

Now is a great time to buy a home or investment property with the historically low interest rates.  For most buyers it is even a better time to buy NOW than it was with the $8,000 tax credit which was offered to first time buyers.  Why?  With the interest rates as low as they are - 4.375% for conforming loans - you can save more money per year on interest over a period of 5 to 7 years than you would if you had the tax credit check.  Another advantage of the low interest rates is that they are available to anyone with the qualifying credit scores - not just first time buyers.    Now you wont get a check in the mail but over the life of your loan - it will be a huge savings.  Just how huge you ask? Take a $300,000 loan with 30 year fixed loan.  Monthly mortgage payments with an interest rate of 5.25% (interest in April 2010)  would be $1,649.40/month (principal and interest).   The same mortgage amount of $300,000 with current interest rate of 4.375% produces a monthly payment of $1,492.42 (principal & interest).  A difference of $156.98 a month which translates to $1,883.76 a year.  Based on the National Association of Realtor's statistics - most homeowners stay in a home for 5 to 7 years.  In just 5 years - a buyer would save $9,418.80.  $1,418 MORE than the $8,000 tax credit.  If you were to stay in your house for 30 years - it would be a savings of $56,512,80.  Now that's 56,512 reasons to buy with the current low interest rates.

HISTORICAL INTEREST RATES FOR LAST 18 MONTHS