One of the most important steps when considering the purchase of a house is finding a good mortgage lender and understanding your mortgage rate, the downpayment and monthly payment you can afford, and how the mortgage interest rates will impact your purchase.
In this video, Michael shares some tips about the current historically low mortgage interest rates, as well as free resources for you, the buyer, to take advantage of so you can better understand your purchasing power.
Hi everyone, Michael here, and today we are going to talk about mortgages and specifically how the mortgage interest rate can affect your payments.
So I picked an arbitrary date in 1978 to use as an example and it was the day that “Grease” came out, which is one of our favorite movies, so in 1978 in June the interest rates were 9.719 percent and for those of you who were around then house shopping you probably remember that.
In 1982 they went up to something like 18% so the point I'm making here is our rates today are crazy low
So Danny and Sandy back in June 1978 probably had to sell Greased Lightning in order to afford a house. Here's an example of the numbers:
A $400,000 house at 9.71% interest rate meant a monthly mortgage payment of $3,422
Let that sink in
Now, when I pop in today's interest rates which are about 3.5%, here’s how it changes:
The same $400,000 house at 3.5% interest rate is only a $1,796 monthly payment
A couple of days ago an article was released by the National Association of Realtors that talks about this low interest rate economy that we have right now and mentions that these sub-four percent rates over the last few years WILL NOT last and it is NOT normal for the market.
But it IS something to be taken advantage of. Therefore, the time to buy is NOW! You’re not only buying the house, you are buying the low rate!
If you are in the market right now and considering purchasing,a few things that we suggest for you regardless of whether you are buying here in Southwest Florida or if you're in another state
You are going to want these tools at your disposal as you start searching and get really serious about buying. Knowing your numbers and having a sold preapproval puts you ahead of other buyers and helps you make an informed decision about your purchase. So, take advantage of these historically low rates and go find your dream house! If it happens to be in Lakewood Ranch, Florida, call us so we can help!
Looking for more information on purchasing a home in Lakewood Ranch, FL? Watch this video: https://youtu.be/PnOJHIyXHAQ