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Does a 4.5% Mortgage Mean You Can Buy A Bigger House?

There are TONS of statistics that point to THIS being the right time to purchase a home... but maybe you haven't looked at how LOWER mortgage rates relate to homes?  165 CindercrossFor instance, this is a beautiful "used" home in Garner, NC... The sales price is $259,900.  To keep things easy - let's assume you are putting 5% down on this property. At a 5.75% mortgage interest rate, the principal and interest payment would be @ $1441.  This same lovely house, with mortgage interest rates at 4.5% would have a principal and interest payment of $1251!

A difference - just because historically low rates are even lower - of almost $200 a MONTH!  If the new administration has success, we will see mortgage rates at the 4.5% or below!

Stanton Homes

The home to the left of this picture is a custom built, new home on over 2 acres with an unfinished 3rd floor!  At a "normal" interest rate of 5.75% the principal and interest payment (assuming you put 5% down) is $2022.  If you purchased this home, and had an interest rate of 4.5%... then the principal and interest payment is $1755!!

A difference - just because of historically low rates are even lower - of almost $300 a MONTH!

This is why it's so important for the new administration to get their Cabinet members installed, and then work to get rates down even lower!

Comment balloon 0 commentsEleanor Thorne • January 21 2009 11:45AM

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