Interest Rates Are Predicted to Rise in 2015!
Waiting to Buy a Home Could Cost You Thousands!
If you look at historic mortgage rates by decade in regards to how it equates to a monthly mortgage payment you can see we are at an all time low.
If you look at a $200,000 principle and interest payment on a 30 year fixed mortgage on the image below you can see the cost of home ownership is more affordable that it has been in decades.
This will NOT continue to be the case as interest rates are predicted to be on the rise.
Between the 3rd quarter of 2014 through the 4th quarter of 2015 Freddie Mac predicts rates will rise from 4.2% to 5.2% on a 30 year fixed rate mortgage.
What could waiting to buy a home mean to you?
If you were to buy a home today where you had a $250,000 – 30 year fixed mortgage at an interest rate of 4.8% your monthly principle and interest payment would be $1,218.17.
Ok, so you are on the fence of buying a home today and wait to buy one year from today how much extra would that cost you?
First home values have appreciated between 2% to 4%, so your mortgage amount has increased to $260,000. Your interest rate is now 4.8% and your payment is $1,364.13. You are now paying $145.42 more per month. That is a cost increase of $1,745.04 annually and $52,351 over 30 years. Check out the chart below.
According to Freddie Mac: A person can get a conforming, conventional mortgage with a down payment of as little as 5%. More than one in five borrowers who took out a conforming, conventional mortgages in 2014 put down 10% or less.
Give us a call today. We can show you how to buy a home for as little as 3.5% down.