What To Do With Record Low Interest Rates
With today’s current interest rates, it makes sense to some borrowers and buyers to consider a short-term loan rather than the traditional 30-year loan.
If you find yourself in a position or have any interest at all in buying a home, there has practically never been a better time to do it.
Homeowners currently paying off 30-year loans with rates of around 4% are spending about $1,100 per month on their mortgage payment on a balance of about $200,000, which creates a total interest cost of about $143,700.
Refinancing at current rates, but choosing a shorter loan term would cost a little more per month, but would add up to much less in the long run and would end years earlier.
Low interest rates are very helpful to this housing market as it slashes the monthly cost of ownership and makes it much easier on the buyers wallet. Home prices are estimated at still being around 30% less than the most recent peak. With existing home sales, prices and an uptick in new construction, many rightly feel that there has never been a better time to buy a new home.
Give us a call with your questions about the process and Red Rock Real Estate will assist you in getting into your new home!