As you’ve probably already heard, we are experiencing historically low interest rates in the United States but what exactly does that mean if you are thinking about buying a home? It means money is the cheapest it’s ever been (see graph 1).  

Graph 1

Although homes are selling high, it is important to realize that you are buying low if you are getting a loan. Mortgage rates have a big impact on your monthly payment. 

For example, if you purchase a $300,000 house with a 30-year fixed loan, 5% down payment with a 3% interest rate, your monthly payment will be: $1,883.

For the same variables as the scenario above, here’s what your monthly payment will be with a 6% mortgage rate: $2,390!

That’s about a $507 difference on your monthly payment from just a 3% difference on your mortgage rate!

(Estimates based on $5,500 taxes and 5% down payment)

Fill out this form to start your home search today while mortgage rates are still low!