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What Do Historic Rates Mean to You?

When you hear your favorite Crofton real estate agent saying today is a great time to buy a home because of low interest rates, it may sound like so much hype.  This history of the average mortgage interest rates over the past three decades shows that claims about the record-low interest rate are fact, however, and not just another advertising slogan:

Interest Rate Chart

 

Let’s take a look at what a difference the interest rate can make in your mortgage payment and your ability to purchase:

These monthly mortgage payments of Principal and Interest (P&I) are based on the same $200,000 for a 30–year fixed rate mortgage at the following interest rates:

4%

$  954

11%

$1,904

5%

$1,073

12%

$2,057

6%

$1,199

13%

$2,212

7%

$1,330

14%

$2,369

8%

$1,467

15%

$2,528

9%

$1,609

16%

$2,689

10%

$1,755

17%

$2,851

 

As you can see, today’s low interest rate could mean the difference between you qualifying to purchase a home or not. 

Yet the interest rate is just one of many reasons today is a great time to buy a home. For more information, read Why Buy a Home in This Down Market?

Still not sure you can afford to buy?  Check out this post:  How to Compare Rent to Mortgage Payments.

And don’t forget about the $8,000 tax credit if you’re a first-time buyer.  For more information, read What’s New About the First-Time Homebuyer Tax Credit?

Check out Mortgage Rates – Today, Last Week, and Last Month.

Historic Rates mean you can afford to own a Crofton area home today that you couldn’t just two years ago.  Don’t let this opportunity get away from you!

Mortgage Calculator

P.S.  Worried about job security?  Ask about 24–month job loss protection, offered by sellers of some Long & Foster listings.

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