What a difference a low interest rate can make!


What a difference a low interest rate can make!
By Scott Rogers • January 12, 2009
Some of the agents in my office remember when interest rates were as high as 15% for a 30 year fixed rate mortgage. Wow! Who could afford to buy at those rates!? Today's rates, roughly 4.75% on a 30 year fixed rate mortgage, provide for great opportunities for those considering a home purchase. Here are a few examples of how this rate would affect a monthly payment, as compared to an interest rate of 6.5%, which we saw not too long ago! First time buyer of a city townhome at $155,900 (100% financing): Principal & Interest at 6.5% = $985 / month Principal & Interest at 4.75% = $813 / month Savings = $172 / month = $2,064 / year! Upper-end Barrington Home at $459,000 (80% financing): Principal & Interest at 6.5% = $2,261 / month Principal & Interest at 4.75% = $1,915 / month Savings = $346 / month = $4,152 / year! As you can see, these low interest rates can make a significant difference in a buyer's monthly budget! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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