Interest Rates have not been this low in 30 years! If you talk to anyone who financed in the early 1980s they will tell you they have refinanced multiple times. This is because interest rates hit 19% back then! Can you imagine what your payments would be with a 19% interest rate?! Let’s look at an example:
If your home cost $200,000 and you had a 30 year fixed rate mortgage at 19%, your monthly payment would be $3177.78! These days, with interest rates falling to almost 3%, if you got a mortgage with all else being equal, your monthly payment would only be about $843! What would you do with your nearly $2,350 in savings every month?
Folks, I’m not trying to sell you on the idea of buying a home. I’m trying to sell you on the idea of investing in your future! It is very likely none of us will see interest rates this low again in our lifetimes. After the market crash of the early 2000s, the banks have wised up. They have more stringent approval processes, and not everyone can get approved for a $500,000 loan like they could a few years ago. Buying a home is the largest investment most of us will ever make. Be informed. It is your greatest power as a buyer to have knowledge of the real estate market and what is going on in it.