Interest Rates
I was looking at a report that shows the Mortgage Rates from November of 2009 to November 2010. The rates hovered around 4.8% last November and then increased to 5.3% by April. Since then, the interest rates have gradually fallen to 4.2% in October 2010. Now they are right around 4.5%.
What does this mean for the average home buyer in Austin? Let’s say you want to buy a home for $200,000 and you are putting $20,000 as a down payment. With an interest rate of 4.2%, your Principal and Interest payment would be about $880 per month. With taxes and insurance added on to this, you are looking at a total payment of about $1586 per month. These numbers are only estimates so each person/case would vary. For more accurate numbers, contact Canon Johnson with Prime Lending.
Now, if you did the same calculation of $200,000 home and $20,000 down payment with a 5.3% interest rate, you are looking at $1000 payment. With taxes and insurance, your payment would be about $1705. That’s $119 difference per month! Now do you understand why the interest rate is so important to home buyers? The interest rates will not stay this low forever. Don’t you agree that it’s a great time to buy a home in Austin?! For all your Austin real estate needs, why not call Austin’s Go To Team!
