My New Blog

When you're looking to buy or refinance your home, you need to be aware of what the interest rates are doing.  This is perhaps the largest factor in the equation because when it varies, the impact is exponential. 

Tenths of a percentage point on the interest rate can vary the payment by quite a bit.  The more you borrow, the more exponentially you're impacted.  For example:

Interest rate:  4.6% (I chose this because this was the interest rate on Friday offered by a number of lenders) A 30-year fixed rate mortgage, with no PMI and no escroll of taxes on a 30-year fixed-rate mortgage of a home where you're borrowing $200,000.00 the payment would be:  $1,025.28.

Interest rate:  4.83% (The interest rate being offered today by a number of lenders) in the SAME scenario as above.  The payment would be:  $1,052.96.

The difference between the two payments is only $24.68 BUT there are 360 payments on a 30-year loan so the actual difference is $8,884.80!!

The change of just .23% in this case changed the total paid for the home and loan by over $8,884.80!!  That's more than the first-time homebuyers tax-credit.

To find out if you qualify for a refinance you can speak to a lender.  Many of them will direct you to a website application you can complete which will immediately tell you whether or not you're approved.

IF YOU'RE WAITING FOR A BETTER TIME TO PURCHASE A HOME OR INVESTMENT PROPERTY, YOUR WINDOW FOR THE BEST FINANCING DEALS OF OUR LIFETIME IS QUICKLY PASSING YOU BY.  THE CURRENT INTEREST RATES WILL NOT BE SUSTAINED AND WILL RISE.