Real Estate Savings Strategies: Interest Rate Advantage
3 Bedroom 2 Bath $118,500 Meridian Home for Sale
Buying Power Has Increased 12.5% from March 2011!
We are all currently a part of what may be looked back upon as the best time ever to buy a home. From just one year ago to today we have seen a 1% drop in interest rates. What does this mean for your ability to purchase a home? Let’s take a look at an example. If you were purchasing a home in March 2011 and you could qualify for a $200,000 loan your 30 year fixed rate mortgage would have been locked at or around 5%. Today with rates at or just under 4% you would be able to take out a loan for $225,000 and have the same payment!
2011: $200,000 @ 5% – 30 yr fixed principal + interest = $1,073/mo
2012: $225,000 @ 4% – 30 yr fixed principal + interest = $1,074/mo
Here is the principle and interest payment for the house pictured above at 4%:
$118,500 @ 4% – 30 yr fixed principal + interest = $565/mo
In addition to ultra low interest rates prices in most areas dipped again over the last year. These two factors make this an amazing time to purchase. Let me know if you have any questions or want to know what is available for you in the Treasure Valley.
Learn more about how interest rates save you money!
For more information contact:
Fabulous Idaho Real Estate