Effects of Today's Very Low Interest RatesPosted by Kevin Hughes on Wednesday, July 25th, 2012 at 9:57am.
Long-Term SavingsMost importantly, lower interest rates save you thousands of dollars over the course of the loan. This is why many have found that buying real estate homes can now be less expensive than renting, especially since demand for renting has grown exponentially since 2008. Freddie Mac reports that 30-year fixed interest rates dropped to about 3.5% in July with 15-year fixed rates under 3%. As an example, CNN.com recently calculated that if someone bought a normal home in 2006 with 20% down, they would pay $1300 a month, while their mortgage would now cost $600 monthly. Paying less than half on your mortgage is an incredible savings just from the interest rate. It’s hard to find a decent place to rent for $600 a month, even in Boise, which is below the national average for cost of living. This makes buying real estate homes now such a good decision-- it’s affordable, will likely appreciate well, and this value can’t stay around forever.
Buyer BewareMortgage rates can be pretty confusing which is not a coincidence. Be careful who you choose as your mortgage lender. Search around to make sure they have a good reputation. Rely on the suggestion of your Hughes Group agent, as they’ve seen many transactions and would only recommend those who are best at making an honest, smooth transaction. It would be a good idea to compare rates at a couple of highly-respected mortgage companies. Be sure check out your loan options and find the type of mortgage that works for you. Don’t compare apples to oranges between different companies though, make sure you compare the same type of loan. Your realtor and mortgage lender should explain important to-do’s while getting a loan that you might not have thought of, like not changing anything in your credit until you’ve closed.
As a homebuyer, you have an unprecedented opportunity in front of you. Get ready for huge savings, but be sure to educate yourself on critical facets of the mortgage process. Do yourself a huge favor and only do Real Estate transactions with a Hughes Group professional, so you know you will be in good hands. As a first-time homebuyer or a homeowner looking to add another property or upsize, use incredibly low mortgage rates to save tons of money buying real estate homes.
Call the Hughes Group anytime! 208.571.7145
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