Cascade Built Blog
January 14, 2009
Mortgage Rates are 4.5%
Posted by admin, 7:39 PM
Mortgage rates are low and staying low for the time being. The lowest rates are hovering at 4.5%, and national averages are around 5% Check out the latest here:
If you don’t buy now and wait until rates are at 6.5% (also not a bad rate), which they were recently and will be again soon, here’s an example of your payment:
500K house
400K loan
at 4.5%
$2,600 P&I& taxes
at 6.5%
$3,111 P&I& taxes
That’s $500 a month, or $6,000 a year in savings or cost. Another way of looking at it is in terms of the house you can qualify for on your income. All things being equal, you’d need roughly $78,000 in income to qualify for the 4.5% loan on that house, but would need $93,000 for the same house at 6.5%.
The point is, now is the time to buy. Interest rates are at historic lows, and that coupled with lower prices and a buyer’s market makes it an opportunity.
