Friday, July 24, 2020

Buyer's Just Got a Big Fat Raise... sort of.

Throughout most of this crazy year we call 2020 mortgage rates have been very low, not the lowest ever, but very, very low. Well now they are the LOWEST EVER. For buyers you just got an effective raise with regards to your home buying power. I have mentioned this in previous posts over the years but a 1/2 point difference in mortgage interest rate can add up to a tremendous amount of buying power.

A $300k mortgage at 3.5% will have a principle and interest payment of $1347 per month. That same loan at 3.0% has a PI payment of just $1265. A buyer is qualified based mostly on the amount of the payment relative to income and other payments. At 3.0% interest that $1347 payment gets a loan of $319,500. That is nearly $20,000 MORE buying power. It's like you just got a big fat raise from your boss.

I have many buyers that are looking about, and now is the time to pull the trigger on these crazy low rates. I have seen well qualified borrowers getting rates on 30 year fixed mortgages in the middle twos!

Buyer's this is your moment. Go out and lock down that dream house with a historic low mortgage.


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