Have you heard? Mortgage interest rates have dropped recently? In the fall, we were hearing we weren’t going to see rates in the 5’s again, because experts were expecting them to raise into the 6’s!?!
Guess what, we are in the 4’s today… They do change daily, but I’m hearing mid to low… What does that mean to you?
For simple math purposes, if you take a 300k mortgage and calculate the principle and interest on it at:
- 4% vs 5% vs 6%
- $1432 $1610 $1798
Maybe you don’t think $366 difference a month is that big of deal…
Well…
Based on what’s called your debt to income ratio, you can afford a bigger house when it’s that big of a rate change. So, for example let’s say your monthly with everything (taxes, insurance, mortgage insurance, hoa etc…) that you can qualify for w/ 5% down payment is $2,250…
- 4% vs 5% vs 6%
- $397,500 $356,800 $321,800
So same monthly payment, makes a difference of $75,000 in sales price, undoubtedly a better home, and who doesn’t want the “BEST” home that they can afford with their $?
Moral of this long winded story? Carp Diem! Seize the day folks!
Mind you I’m just a Realtor, but get some advice from our trusted partners Lanie and Joe below…
Want to understand better what drives mortgage rates up or down? See from Lanie Martin of Guild Mortgage…
NOT IN THE MARKET TO BUY BECAUSE YOU LOVE YOUR HOME- THEN IT MAY BE TIME TO REFI ACCORDING TO JOE…
Click image to hear what his thoughts—>
