Low Interest Rates = Great time to Buy
Interest rates remain low! As of today - conforming loans (under $417k) remain at 4.375%. FHA rates remain at 4.5%. And jumbo rates for qualified buyers remain as low as 5.5% with equity and excellent credit.
I ran some numbers to see what kind of savings you would have with these low rates. WOW - over the life of the loan you can save tens of thousands of dollars. On a loan amount of $200,000 - the monthly mortgage payments on a 30 year fixed (does not include taxes, insurance) are:
| Interest Rate |
|
Monthly Payment |
|
Monthly Savings compared to $998.57 |
| 4.375% |
|
$998.57 |
|
not applicable |
| 5.375% |
|
$1,119.84 |
|
$121.27 |
| 6.375% |
|
$1,247.75 |
|
$249.18 |
Aside from the monthly savings - an interest rate of 4.375% vs. 5.375% could save you $43,693.91 over the life of the loan. And an interest rate of 4.375% vs. 6.375% could save you $89,700.94. WOW.
