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According to bankrate.com the benchmark
30-year fixed rate fell to 6.08% that is the rate’s lowest level since October
of 2005. Soooooooo, if you didn’t take advantage of your opportunity then you
have another chance.
Two years ago shortly after "hitting bottom," interest rates shot up
to over 9%. The difference of two percentage points on rates is staggering over
the life of a loan. A $100,000 loan at 9% for thirty years requires a payment
805.00 but drop the rate to 7% and the payment is $666.00. The difference per
month is $139.00 and per year $1,668.00 and over the life of a thirty year loan
$50,040.00!!
The secondary benefit of taking advantage of
today’s low rates is you can qualify to buy more houses. For example, lets say
that you’ve qualified for a $100,000 loan at 9% with payments of $805. per
month. By placing 20% down you can buy a property valued at approximately
$125,000. If we assume the same down payment with the loan rate at 7%, you now
qualify for a loan of $121,000. and a property valued at approximately
$151,000!
You may wonder if rates are going lower.
There are no guarantees in the money market and the risk of waiting is probably
not worth it. Rates may just as likely go up. Some lenders may allow you to
"lock" a rate based on a conditional loan approval on a specific
mortgage amount. If you have the need to buy real property, NOW IS THE TIME.
Take the Nike approach and "just do it".
Whether
you’re thinking about buying or selling or seeking information, rely on RE/MAX
Best Associates 800-391-BEST(2378) or 913-345-BEST(2378) to provide accurate up
to date information about the marketplace. info@kansascityehomes.com www.kansascityehomes.com