Mortgage interest rates have plunged recently, which is great news if you’re considering a new home purchase. The interest rate on your mortgage can have a big impact on your monthly bill, and rates on a 30-year-fixed mortgage are below 4% for the first time since May 2013.
According to this article by Reuters News, applications for home mortgages jumped nearly 50% in the first full week of January – the largest percentage gain in more than 5 years.
Just how much does that interest rate matter? Consider this calculation from Forbes.com:
“The mortgage rate really matters because a one-percentage point difference in mortgage rates translates into at least a 10% difference in the monthly mortgage payment. For example: on a standard 30-year fixed-rate mortgage, the monthly payment on a $200,000 loan would be $955 for a 4% mortgage versus $1074 for a 5% mortgage. That’s a monthly difference of $119.”
So if you’ve been thinking about purchasing a new home, now is a great time to take action while rates are low. It’s impossible to know how long rates will stay this low, so a delay could be costly if rates rise again soon.
Contact us if you’re ready to talk about purchasing a home at Autumn Lake. We have new homes that are move-in-ready, or we can build a home for you on one of our available lots. We’d love to hear from you!