Save Over $12,000 in Interest Costs

Compared to about one year ago, today mortgage rates spell incredible savings in interest costs when buying a home.

Last Spring mortgages rates were about 5.79% for a 5-year fixed-rate mortgage.
Today mortgage rates for a 5-year fixed mortgage can be had for as low as 4.39%.

Look at the Savings
The following scenario uses a $200,000 purchase price, a $180,000 mortgage and a 5-year mortgage with a 30-yr. amortization:

Purchase Price of Home:

  $200,000

Down Payment of 10%:

   $20,000

Mortgage Required

 $180,000

Amortization

  30 years

Payment is Monthly

 

1. Rate 1-yr ago: 5.79%, Interest over 5 yrs: $49,740.22
2. Rate today:     4.39%, Interest over 5 yrs: $37,475.23
SAVINGS:                                                                 $12,264.99

What's more, the monthly payment for interest and principal is $1,047.16 versus $896.10--a monthly savings of $151.06.
That's an amazing impact on the costs for a mortgage today. A saving of over $12,000 in mortgage costs over 5 years is like saving 6.13% off the purchase price of a home worth $200,000.

So does that translate into a great time to buy?
One would think so. The key is to work with a real estate professional who will work for you in a client relationship. Through a buyer consultation, he or she will:

  • 1. Arrange a meeting with a mortgage specialist to see how you qualify,
  • 2. Consult with you to determine your wants and needs,
  • 3. Arrange suitable and market-priced home viewings,
  • 4. Assist in evaluating and advising you on value,
  • 5. Negotiate for best price and terms and much more.

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