Mortgage Rates & Purchase Price
Timing is everything in real estate. Since April 22, 2014, mortgage rates have steadily declined to its lowest level of the year.April 22, 2014 Quote: 4.500% (30-year fixed)*
Current Quote: 4.000% (30-year fixed)*
* Rates depend on various factors (e.g. financing programs, credit scores, down payment, income/debt ratios, etc.). Rate information provided by Wisconsin Mortgage Corporation (http://wimort.com/).
Assume you're in the market to purchase a $200,000 home.
In April 2014, your mortgage payment (principal & interest only) would have been $810.70 per month (assuming a 30-year fixed-rate mortgage, 20% down payment).
Today, that same home would cost only $763.86 per month (same terms as above). A $46.83 savings per month!
Another way to look at rates?
For the same monthly payment of $810.70, you can afford a nicer home at a sales price of $212,250 (30-year fixed-rate mortgage, 20% down payment).
Unlike
monthly rent payments, monthly mortgage payments will never change over
the course of your mortgage term. Real estate taxes and homeowners
insurance will change, but your monthly principal & interest is
locked in for the life of your loan.
Don't think you'll live in your new home for 30 years? Seven-year ARMs are also available at 3.125% (per Wisconsin Mortgage; depending on credit scores, down payment, income/debt ratios, etc.).
Many analysts are projecting that rates will increase to 5.000% (30-year fixed) by the end of 2015.
Questions about mortgage rates or the real estate market in Metro Milwaukee? Feel free to leave a comment.
Disclaimer: All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. This is a personal weblog. The opinions expressed here represent my own and not those of my broker.
Don't think you'll live in your new home for 30 years? Seven-year ARMs are also available at 3.125% (per Wisconsin Mortgage; depending on credit scores, down payment, income/debt ratios, etc.).
Many analysts are projecting that rates will increase to 5.000% (30-year fixed) by the end of 2015.
Questions about mortgage rates or the real estate market in Metro Milwaukee? Feel free to leave a comment.
Disclaimer: All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. This is a personal weblog. The opinions expressed here represent my own and not those of my broker.
posted by David Ray @ 2:37 PM
1 Comments:
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