Earlier in the year there was a lot of speculation that rates would start increasing dramatically. Well I am happy to be the bearer of good news. Rates are still on the decline. Mortgage rates fell for the fourth week, with rates on the 30-year fixed-rate mortgage averaging 4.63%, the lowest this year, according to Freddie Mac’s weekly survey of conforming mortgage rates.
So what exactly does all of this mean? Well according to NAR (National Association of Realtors) the median home sales price across the nation in March 2011 was $159,600. Here is an example: Purchase price of $159,600 with 20% down ($31,920)=Loan amount of $127,680 with an interest rate of 4.63% (30yr) leaves us with a monthly payment of $656.84. Question...How much are you paying in rent?
Many people are concerned about the down payment amount. There are still low down payment options such as FHA loans (if you qualify). Additionally many lenders are offering incentives such as cash back at closing.
With rates remaining historically low and homes prices still lower than they have been in the last decade I think the question is who cannot afford to buy right now?
Please feel free to apply for a loan directly on my website at www.vanessajones.com or email me with questions: vanessa (at) vanessajones.com
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