So over the course of the last 6 months, there's been a BIG shift in the real estate market that will benefit home buyers.
If you or someone you know plans to buy a home in 2019 or 2020, then continue reading! :)
That big shift in the the last 6 months: Mortgage interest rates have taken an unexpected drop. Big time... What does this mean for prospective home buyers? Simply put, buying a home in Algonquin, Huntley and Lake in the Hills just got cheaper... A LOT cheaper.
Check out this chart and you'll see how the interest rate & monthly payments have dropped since Nov 2018. This chart displays an example for both a $250k mortgage and a $300k mortgage. In Nov 2018, rates topped 5%... Today, they're back in the low 4%'s...
|Mortgage Interest Rate Comparison|
|November 2018||April 2019||Savings Per Month TODAY||Savings Per Year||Savings for 30 Yr Fixed Loan|
|Interest Rate (APR)||5.09%||4.28%|
|Payment for $250,000 mortgage||$1,356||$1,234||$122||$1,464||$43,920|
|Payment for a $300,000 mortgage||$1,627||$1,481||$146||$1,752||$52,560|
Even if you're not good with charts, numbers, etc. it's all good. All you have to know is - buying a home got significantly cheaper!
Let's dive into the numbers... We'll take the clock back to Nov 2018 when the interest rates (APR) was 5.09%. On a $250k mortgage, you're monthly payment (principal and interest only) was $1,356. Today, with rates around 4.28%*, that same payment is $1,234... That's a savings of $122 per month! Or - $1,464 per year!
If you have any questions on any of the above, or just how to buy and/or sell a home, I'd be happy to help. It doesn't matter if you're planning to move this year or next, or maybe even beyond that, I'm always happy to help. Have a great day and week!
Pat Kalamatas - 103 Realty
Owner & Realtor
*Interest Rates change daily, and are not quoted or guaranteed by 103 Realty. This is an example only, source: https://www.nerdwallet.com/blog/mortgages/current-interest-rates/