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.

1 Share Like Comment Share

Blog author image

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....

Latest Blog Posts

Location Location

When you can work from anywhere, why not work from West Des Moines, Waukee or Urbandale? Dallas County, Iowa was #10 on the Top 10 places remote workers can call home. You can

Read More


If you’re thinking about selling your house this year, have you been a little nervous about the market?I get it - it’s been a year!First, the economy tanked with COVID-19. But that didn’t

Read More

Updating Your Cabinets

An easy way to update your kitchen or bath without breaking your budget is to paint the cabinets. It's definitely worth your while

Read More

Is Now A Good Time To Sell

2020 has been a strange year for all of us! And the real estate market is certainly no exception. A common question we've been hearing - is now a good time to sell?

Read More