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Wednesday, August 3, 2011

17 Basis point drop in Mortgage Rates: here is what it means to you!

An example is using the current drop in interest rates to buy more home for the same monthly payment:

- Today an FHA 30 year loan, 3.5% down payment, 740 FICO and 60 day Rate Lock is 4.25%

- 2 months ago it was 4.75%

- Home Value Comparison:

o Payment of $2,254.93 @ 4.75% = $432,270 Mortgage or Home $447,949

o Payment of $2,254.93 @ 4.25% = $458,375 Mortgage or Home $475,000

 $27,051 in Home Savings!

You can use Today’s Low Interest Rate to Buy a home $27,000 more expensive than 2 months ago for the same monthly payment!

When the stock market recovers, interest rates will rise and you’ll lose this benefit.

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