Ready to Buy?
If you are a buyer who has been on the sidelines, the slow in appreciation of housing prices (and outright fall in some areas) might just be getting you in the mood to purchase.
Here's some good news: Rates have dropped this year from a high of 6.8 percent to about 6.4 percent. You could save hundreds if not thousands on mortgage payments with a mortgage just .4 percent lower. For example, at 6.4 percent interest, the payment on each $100,000 that you borrow is $625.51. That's about $25 less per month than if you got the same mortgage at 6.8 percent.
Are you looking at a $250,000 mortgage? That means you'll have a payment of $62.50 less at 6.4 percent. You'll save $750 dollars each year.
It always pays to shop around with mortgages. If you can do this well with posted rates, you may do even better with an excellent credit rating. Frankly, my wife and I have never paid the posted rate for a mortgage. If you are a low risk to a lender, they want your business, and they'll offer you a better deal to get it. After all, you are money in the bank to them!
Of course, the trick will be to get the right house at the right price, as well as negotiate the best mortgage interest rate. You might have a bit of an advantage at this time of year; there is usually a bit of a slump in buying as we move into the fall, and that could help make prices more attractive.