The word on Wall Street is that the Federal Reserve might begin raising interest rates as early as June of this year. Currently hovering at about 4 percent for a 30-year fixed mortgage, now is the perfect time to lock-in a great rate on a new home and enjoy big savings over the life of your home.
As recent as the summer of 2009, we saw interest rates holding steady at 6 percent.
On a $500,000 home with 20 percent down at 6 percent, the principle and interest payment is $2,398 per month.
On the same loan at today’s rate of 4 percent, principle and interest is $1,909 per month.
That’s a monthly savings of $488.
Most people stay in their home for about 5½ years, and at 4 percent, that savings is about $32,000.
In fact, to qualify for the same $500,000 home at 6 percent, you need to make $13,000 per year more than if you were securing a loan at 4 percent.
For more information on home loans, contact Bobby Sillers at ascenthomelending.com
Click here to see the latest in real estate news. President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with seven offices in Dallas, Fort Worth, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.