How Interest Rates Influence Your Property Buying Decision?
Let’s say you purchase a home that is worth $500,000 with a 10% down payment, $50,000, 30-year mortgage and a 3% interest rate. You are looking at the monthly principal & interest of $1,897.
Now let’s say the same house is worth $480,000 the next year when the “market crashes” but now the interest rate has increased to 4%. This same house is now costing you $2,062 per month of principal & interest!
We are not fortune tellers, but we do know that interest rates currently are at historic low and it is only a matter of time before they come back up. So always remember that you don’t live on the price, you live on the monthly payment. Start enjoying the new home today, contact me today for more details and stay tuned for more advice.