Archive for February 14th, 2011

Hello Buyers-Mortgage Rates on the Rise

 

Buyers who have been waiting for the real estate market to bottom need to take note. All indicators tell us that we are coming out of bottom. What also needs to be watched are the mortgage interest rates and they are on the rise.  Interest rates on a 30-year fixed rate mortgage rose to the highest level since April of 2010.  Now historically the interest rates are still very low at 5.04% fixed on a 30 year mortgage but with just a small percentage hike, what you can afford goes down. Let me show you:

On a $150K mortgage with a 5.04% rate for 30 years is $808.90 per month.

On a $150K mortgage with a 5.75% rate for 30 years is $875.36 per month.

No big deal right? It is just a $66.46 a month difference. But over a year that $66.46 grows to $797.52, and over 30 years grows to $23,325.60. Now it is a big deal because that is money that you would like to keep! 

In order to have that monthly payment stay at $808.90 with a 5.75%  rate you would now only be able to borrow $138K.  And if you have been out looking for a home  in the Boise area you know that you can buy a lot more house with$150k than $138K.

If you would like additional information please go to my website: (There is no sign-up or registering, you can browse as long as you want!)  http://www.BoiseRealEstateChick.com where you can use the mortgage calculator and see how much home you can afford. Then browse through the listings to see the difference $12K makes when buying a home!  

If you have any questions please feel free to contact me: mary@heritagewifi.com

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