Home buyers who missed meeting the Tax Credits that required being in-contract by the end of April, may be glad they waited. Once the deadline passed, mortgage rates began to decline as did some home prices as sellers were fearful that demand would drop off after the deadline.
As of this writing, rates are BELOW 5%! An email from a loan officer indicated that the last time regular rates were this low was in the early 70′s. That’s outstanding! That means that buyers can save far more in interest payments than they would have received from the government Tax Credits.
Lower interest rates can also mean a lower monthly payment,
OR the ability to buy a slightly higher priced home.
Thanks to Pam Mahon with Real Living Mortgage*, here are the savings you can obtain at current rates vs those on April 30 when they were approximately 5.125%.
- Based on a 4.5% interest rate for a $200,000 loan, you would save $27,200 over the life of the loan.
- For a $300,000 loan, you would save $40,800.
- For a $400,000 loan you would save $54,400.
So if you think you missed out, you may be better off by having procrastinated. The first step to purchasing a home is to talk with a lender to determine how much mortgage you qualify for. Give Pam a call at 614-273-6366 to start the process. She’s very helpful.
* Real Living Mortgage, LLC Series A
An Affiliate Of Wells Fargo Home Mortgage
MAC M6873-011
