Mortgage Rate Update

Dated: 05/21/2020

Views: 127

We just had someone lock in at 2.87% interest. That is incredible isn't it?? But, just HOW incredible is it? Let's look at a price of $300,000 over 30 years and compare the monthly payment (principal + interest only) with just 1% difference in rate: 2.87% = $1243.88 3.87% = $1409.85 A difference of $165.97! Not only is that a great savings each month - but it also helps you AFFORD more of a house. About $40,000 more in this case! For example, if you bought a house for $340,000 at 2.87% interest, the payment would be $1,409.73. That's an INCREASE of $40,000 in the price but your payment is still 12 cents lower per month than a price of $300,000 at 3.87%. Obviously, 2.87% is amazing. But, 3.87% is nothing to sneeze at. That's actually a pretty good rate too. But, what if all the predictions that rates were going to go up (you know, like they did last year) just ONE point higher at 4.87%: $300,000 = $1586.71 ($302.83 more than at 2.87%) $340,000 = $1798.28 ($388.55 more than at 2.87%) WOW! The moral of this story is that if you're thinking about making a move (or re-financing) - now might be the right time. If you've got questions about what's right for you - let us know. We're here to help and can connect you with one of our favorite lenders. No photo description available.

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Heather Wright

In the competitive Des Moines market, Heather Wright combines client-focused service, innovative marketing techniques, and a decade of experience to make sure that your buying or selling experience is....

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