Wednesday, 03 December 2008
Are you asking yourself the question, “Should I buy a home now or wait for a better market?” If this is you, please read on. On November 3, 2008, you could obtain a 30 year fixed rate loan at 6.50%. On a $100,000 home loan, the payment would be $632.07 per month. On December 2, 2008, the interest rate would have been 5.50%. What does that mean you ask? It means that same $632.07 (principal and interest) payment could get you an $111,321 loan or 11.3% more home. That $100,000 loan mentioned earlier would cost you $567.79 per month (10.1% smaller house payment). These historically low interest rates mean it is time to buy! Homes and money are on sale NOW! Don’t wait to take advantage of this or it will be too late.
** Figures provided by Laura Criner of US Bank Home Mortgage.
