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It was two years ago I wrote that interest rates had reached their lowest levels in two decades. Rates today are hovering at nearly the same level (7%). Soooooooo, if you didn’t take advantage of your opportunity then you have another chance. We are in a so called election year and the odds are good that Mr. Clinton is reluctant to make economic waves.
Two years ago shortly after "hitting bottom," interest rates shot up to over 9%. The difference of two percentage points on rates is staggering over the life of a loan. A $100,000 loan at 9% for thirty years requires a payment 805.00 but drop the rate to 7% and the payment is $666.00. The difference per month is $139.00 and per year $1,668.00 and over the life of a thirty year loan $50,040.00!!
The secondary benefit of taking advantage of today’s low rates is you can qualify to buy more house. For example, lets say that you’ve qualified for a $100,000 loan at 9% with payments of $805. per month. By placing 20% down you can buy a property valued at approximately $125,000. If we assume the same down payment with the loan rate at 7%, you now qualify for a loan of $121,000. and a property valued at approximately $151,000!
I am working with several clients now that ask whether the rates are going lower. There are no guarantees in the money market and the risk of waiting is probably not worth it. Rates may just as likely go up. Some lenders may allow you to "lock" a rate based on a conditional loan approval on a specific mortgage amount. If you have the need to buy real property, NOW IS THE TIME. Take the Nike approach and "just do it". Call me today on my 24hr line at (913)339-0615 or toll-free at 800-391-BEST(2378) or drop me a line by email. I’d welcome the opportunity to assist you in taking advantage of today’s attractive interest rates.
Whether you’re thinking about buying or selling or merely seeking information, rely on me to provide accurate up to date information about the marketplace today.
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