Posted by on

INTEREST RATES BACK DOWN by Paige Marsh

INTEREST RATES BACK DOWN by Paige Marsh

If you are on the fence about whether to pursue buying or building a home this year, look to the current interest rates for your answer. From a recently published table sent to me by a lender friend of mine, the first quarter of 2015 has a current average rate of 3.72%, which is a whopping 3.5% lower than the 30 year average.

(see http://www.mediacenternow.com/temp/15678_2.pdf?gd=56cea3d9-c60c-4ba9-aa8d-ba8f0046b3ee)

Looking at this rate versus the 5.87% interest rate from 2005 (remember when THAT was a good rate??), you can see why this is such a terrific time to lock in payments for a 30 year mortgage:

Purchase price of $200,000 with a 20% down payment:

Loan amt $160,000 at 3.72% P&I only: $739 per month
Loan amt $160,000 at 5.87% P&I only: $946 per month

You can see how that is a savings of over $200 a month. Would you rather pay $739 or $946 for the EXACT SAME HOUSE? This is a really good thing to consider right now as it has been projected by some financial analysts that the interest rate could increase to 5% by the end of 2015. If this does become the case, then you really could be faced with the scenario of deciding whether you want to pay $739 or $946 for the exact same house. The only factor that will determine getting the lower payment will be your timing. Purchase sooner and guarantee getting the better rate. If you wait, you could possibly be throwing a few extra thousand dollars away each year in interest charges. I can think of many different ways that I could better spend that extra money – like a family vacation!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

What Our Customers Are Saying

Great experience with Kelsea Burton

Kelsea helped us buy and sell our homes this summer. It was our first time selling so we had a million questions about the process and she answered them all with patience. Answered calls every time and always kept us updated. We got great deals on...

whitney bladen
Kelsea went above and beyond

Kelsea Burton went above and beyond to help us not only sell our home but also find our dream home! She handled any and all bumps in the road (that come with the process) with ease and because of that it was smooth sailing! (Or smooth selling! ;))...

Kylie Burton
Amazing Realtor

Kelsea is wonderful to work with. I would highly recommend her. She is sweet and knowledgeable and there when I need her.

Michelle Harrington
Thank you Shelby

Attn. Shelby Smith,

First, my son, Jim, and I wish to express our sincere gratitude for your counsel and information regarding inquiry of properties of the Cedar City area. We appreciated the personal friendliness and helpfulness of our vis...

james melching
Realtor Extraordinaire!!

We recently sold our home with the help of Marilyn Teed. She made the process very easy for us. She went above and beyond anything we expected from a realtor. As we were busy getting settled in our new place, she took care of many incidental thing...

Rick and Dianne Hadlock
Knowledgeable, Reliable, Trustworthy

Kelly Adams is an amazing Real Estate Agent. He is professional, trustworthy, patient, and extremely knowledgeable about housing options in the area. We were moving across country and he worked tirelessly with us. We ultimately felt very comfortab...

Sarah Brock
Excellent Experience!

We bought our home with Jason Spencer and had an excellent experience! Jason was very helpful through the entire process! He was always available which was very helpful as we were moving from out of state. We would definitely recommend Jason and S...

Travis and Keli Allen
Kelly Adams

Kelly did a great job helping us purchase some real estate!
He was prompt with good follow through for our
questions and concerns.

Eric Muller
Steve Barnes answered all our questions

Steve Barnes was extremely instrumental in us finding and buying our home! We were moving across the country and only had a few days to find our forever home. Before we came out to look at homes Steve answered all our questions and would hunt down...

Sarah Black
Honest and hard-working

Kelly Adams has been an amazing realtor! He is honest and hard-working. I know he had several other clients while he was selling our house, but it felt like we were his only client. He was very attentive. He respected our privacy and gave plenty o...

Tyree Jensen

Read More Testimonials »

IDX information is provided exclusively for consumers’ personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that the data is deemed reliable but is not guaranteed accurate by the MLS.

This IDX solution is (c) Diverse Solutions 2020.