Although the world
situation has changed in the past months and there is much
apprehension over the economy here at home, there is a bright
spot for those wanting to buy a home. Interest rates that
were already at 30-year lows, have now fallen to 40-year lows.
that means three substantial rewards. First, monthly payments
on a home mortgage will be lower. Second, buyers will now
find they can afford more home for the payments. Finally,
because of the first two, buyers who may not have qualified
for the home of their choice, may now find they will be accepted.
On a typical 30-year
loan for $150,000, the payment three months ago (at 7.5% interest)
would have been about $1,048.82. Today at lower rates around
6.5%, that same payment would be only $948.10, a savings of
over $100 each month.
Buyers can also
afford more home. Buyers who qualified for a payment of $1,048
on a $150,000 mortgage several months back, would now qualify
for a mortgage of $165,600, allowing the purchase of a larger
who did not qualify for a $150,000 mortgage last year with
a payment of $1,048, would now be qualified at the $948 monthly
payment level. What was only a dream last year, could become
a reality at today's lower rates.
Lower rates mean
greater home buying opportunities. The right time to buy is