Lately I have noticed that quite a few people have been visiting an old post comparing interest rates and monthly payments. That post was from March 2009, when rates were in the mid 5% range… considered low after rates averaging in the 6% range prior to that.
I don't think anyone ever expected rates to drop into the 4% range… yet here we are a year and half later with rates around 4.25% for a 30-year conventional mortgage!
To give you an idea of what effect interest rates can make on your monthly mortgage payment I did a quick estimate of payments at different price points and different interest rates. NOTE: These are rough estimates ONLY, for conventional 30-year mortgages. Actual costs will vary based on taxes and insurance. I assumed a 5% down payment for prices $150K-$300K… 20% down for prices $350K-$500K. The impact on your montly payment increases as your price point increases.
This continues to be an amazing time to be a home buyer and Minneapolis has been named one of the best places to be buying right now because the Twin Cities is leading the nation in price reductions.
This could show that we have smart sellers… when demand drops, sellers realize they need to drop the price to get the sale!
Sharlene Hensrud, RE/MAX Results - Email – Twin Cities Realtor
RELATED POSTS
