Interest Rates

This morning some of the banks raised their lending rates. Long term rates are heading over the 5% range and this will no doubt affect some people. I like to take this opportunity to share a story about interest rates. In 1990 I purchased my first home at the age of 24. At the time the house I was looking at was 56k and perfect for a starter home. When I shopped the interest rates the best i could do was 11.5% when the banks were offering 12 and 13%. Looking back though it didnt even play into the purchase as the down payment and the monthly payment fit. In the end I sold it and made money 4 yrs later and moved up to a newer home and lower interest rates. So the moral of my story is...don't let a little increase in the already low rates deter you from a home purchase. When its a buyers market your money will be made on the purchase.

Vincent Johnston

Vincent Johnston

Sales Representative
CENTURY 21 Eady Realty Inc., Brokerage*
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