A rather bold headline, but it got your attention, huh?
Marc Roth writes in an article for BusinessWeek that there’s a single major factor that should entice anyone to buy a home right now – historically low interest rates.
He goes on to say that cyclical trends indicate the rate will soon rise – so now is the time to act.
But why all the fuss? Does a quarter point increase in the interest rate really have much of an effect? Check this out:
“Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let’s assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.”
You can find the full article from BusinessWeek here.
Want to learn more about interest rates specific to DFW?
Contact Home Team Mortgage Company, a 13-year-old mortgage lender affiliated with Ebby Halliday that processes, underwrites, closes and funds all their loans in house – a control that gives them a strategic advantage in today’s mortgage lending market.
Call them today to answer your questions or get prequalified at 972-980-6653 – or click here.