Two words - Affordability and Demand.
Let's say you want to purchase a $500,000 home. Four years ago the mortgage rate on that home might have been about 6.5 percent. Your house payment would have been about $2,528 a month for a 30 year loan with 20 percent down.
Today, you can likely get a little more home for your money and the interest rates are rock bottom. A $500,000 home will cost you $1,909 a month for a 30 year loan at 4.5 percent with 20 percent down. And right now with excellent credit score you should actually be able to get a mortgage under 4 percent - making that payment even lower.
If you don't take advantage of today's low mortgage rates, some day your kids will say "You mean you could have bought a home with a fixed rate mortgage under 5 percent and you didn't?". You could have bought a nicer home and your payments would be $1,909 a month (or less) instead of $2,528 a month (or more)?
You'll be lamenting how you 'should've bought back then' when prices were low and interest rates were a steal. The year 2012 is the year of affordable homes in Dallas. [where: 75230]
1 comment:
Your thinking and the facts you've collected are very good but sometime things go against you.
Anyhow hope for the good and I've enjoyed your writing style and skills.
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