Rates are Super Low. What Now?
When the Time Is Right, Take Action!
The interest rates that lenders charge can make a big difference in your buying power and it’s very volatile and completely out of your control. This past week, rates have plummeted to near 3-year lows. It seems that it’s a response to the Corona virus. In fact, lenders I’ve talked to say that this is a typical response to world events. When it comes to interest rates, bad news generally brings lower rates.
The chart above shows 30-yr fixed interest rates since 1970 and you can see that it’s about as low as it’s ever been (click here to see an interactive image of the chart so you can see numbers over time).
Really, TAKE ACTION
What does this all mean for you? This is a good opportunity to either:
- refinance your mortgage
- buy a house,
- or sell a house
I know I’m a realtor and I stand to profit from telling you that. But it’s just true.
Assume you borrow $500,000. At 4% interest you’re paying $ $2387.08 to spend monthly towards principle and interest. But if you borrow the same amount at 3%, you’d be paying $2,108.02. That’s $279.06 in savings monthly. But over the course of 30 years, that’ll save you over $100,000. If you invested that 279.06 monthly wisely over those same 30 years earning 5% interest, you’d more than double the 100k, totalling $232,200.
If you’re buying or refinancing, this means increased savings and buying power. If you’re selling, this environment means that there will be more buyers that are able to buy your house.
Please reach out and let me know if you need a referral to a lender. Don’t be intimidated by the complicated process. That’s what we are here for.
When the Time is Right, Be Decisive! Take Action!
Rates are at historic lows. That means it's a great time to buy OR sell. Let's get started.