How Low Could Your Monthly Payments Be?
How do today’s low rates impact affordability? Find out in this quick message.
Buying a home? Click here to search for homes
Selling a home? Click here for a FREE Home Price Evaluation
Mortgage interest rates have been bouncing around just below 5% for some time, but they recently hit a 14-month low.
With rates now at 4%, this means houses are more affordable than ever. Now is the time for those who have been thinking of buying a home to make a move. Low rates translate to low monthly mortgage payments, and this opportunity won’t last forever.
With all of this in mind, the concept of how interest rates relate to monthly payments can still be confusing. To help you gain a better grasp on the idea, let’s review a few scenarios.
For each of these scenarios, let’s imagine that you’re buying with 5% down and with decent credit—meaning you’ve got a score between 650 to 700.
Mortgage payments can be more affordable than you might have previously thought.
If you were to buy a $200,000 home with decent credit and a 5% down payment, your monthly mortgage payment would be approximately $1,400. If the home cost $300,000, your monthly payment would be closer to $2,000. At $400,000, your monthly mortgage would be $2,600, and at $500,000, it would be at $3,300.
As you can see, mortgage payments can be more affordable than you might have previously thought.
More homes are coming onto the market this spring than ever, and with interest rates as incredible as they are right now, you’ll definitely want to connect with an agent as soon as possible if you’re looking to buy.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.