Quick … if I were to ask you what the interest rate is now on a 30-yr fixed rate loan, would you know the answer? Do you know what the rate was a year ago?
A year ago the rate was 5.25%. Today it’s 4.5%, depending on the applicant’s credit score and income/expense ratios. That may not seem like much of a difference, but let’s look at how much it changes your monthly payment.
Suppose you want to buy a home in southern Delaware County with a $250,000 mortgage. At last year’s rate, your P&I would have cost $1,382.50. At this year’s rate the P&I would be $1,267.50. So your mortgage payment would be $115 less than it would have been last year. That’s a savings of $1,380 per year … basically the savings of one entire monthly payment.
If you been sitting on the fence regarding selling or buying a home, you should consider how beneficial it would be to do so now from an interest rate perspective. Of course, there are other things to think about such as the equity you now have in your home and the price it might sell for, but if you’re in a good position it is certainly something to think about.
Give me a call and I can help you with comps, plus, I’ll do a Net Equity Estimate for you to see if it is a good time for you to change homes.
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