See How Low Interest Rates Affect Your Mortgage

At Wells Fargo, it’s typical home purchase 30-year fixed rate increased back up to 4.875%.  When I read the word "increased", it amazes me that interest rates have increased to ONLY 4.875%.  Do you realize how great of a rate that is???  When my husband and I purchased our first home in 1991, our interest rate was 9%!  When I sold real estate in the mid 90's interest rates were roughly 7% - 8%.  Again, when I read the word "increased", I'm simply amazed!  I really believe people simply do not realize, or have forgotten, how much these low rates will save you on a monthly mortgate.  These rates are not going to last and are not going to get any better than this folks.  Below is a chart to illustrate how much today's low interest rates make a difference in a monthly mortgage payment.

more house for the $$$

From 5% to 8%, there is almost a $500. A MONTH savings on a $250,000. 30 year mortgage.  Let me repeat...$500 a month, that's a good car payment!  Assuming interest rates go up to 6%, to have the same monthly payment with a 5% rate on a $250,000. 30 year mortgage, someone would have to get a mortgage of about $225,000.  What would that $25,000 difference cost you?  If someone were to buy a new home at $100 a foot, that person would get 250 less in square feet.  To put this into perspective, 250 sq. ft is equivalent to a 15 x 16.5 room or two rooms, such as, a bedroom AND an office.  Ask yourself, would you rather your money pay for more enjoyable living space or interest to a mortgage company? 

One thing I do know, and others know, these record low interest rates are NOT going to last.  All the experts are predicting they will rise and soon.  In addition, home prices are really good right now in Jonesboro.  If you are riding the fence on buying a home, for whatever reason, these two reasons alone should be enough to make you get off the fence and take advantage of this great opportunity while you can.  I just do not believe it's going to get any better than this!

If you have worked with me before, I'm sure you would agree I am not a pressure salesperson.  I want my clients to feel comfortable and confident they are making the best decision for themselves.  So I just wanted to add by writing this post, I am not trying to persuade people into something that would not be beneficial to them.  This truly IS a great time to purchase a home!