The rates are falling the rates are falling. Interest rates dropped 1 point this week. On the surface this may not appear to be a substantial savings; but dig a little deeper and you'll find that it can put a little money in your pocket.
If you have been on the fence about purchasing real estate in today's current market; particularly foreclosures this article will explain why it makes sense to buy now. According to Frank Northaft, the vice president of Freddie Mac and chief economist "This week's decline was the largest since the week of November 27, 1981, and 30-year fixed-rate mortgage rates are now almost a full percentage point lower since the last week in October, 2008."
So it should come as no surprise when the Mortgage Bankers Association announced that mortgage applications were up over 112%. This time of year is generally a seasonally slow period for real estate sales. The influx of mortgage applications is a definite boost to what some describe as a slumping market.
Truth be told, people are willing to spend money; just not so frivolously as years past. This is a new type of America. One in which the citizens are electing to be responsible with their spending. The buy now pay later mentality is over. Instead we look for smart ways to make our money grow.
That is why buying real estate makes so much sense now. Here is an example demonstrating the difference 1% makes.
On a $200,000 mortgage at 6.00% the payments are $1,199.
At 5.75%; payments are $1,167
At 5.50%; payments are $1,135
At 5.25%; payments are $1,104
At 5.00%; payments are $1,073
*Just ONE percentage point difference on a $200,000 mortgage saves $126 per month.
True, the economy has been shaky but real estate has proven to be the wisest investment. When you combine the cut in interest rate with low sales prices purchasing real estate makes sense.
Richard Elias is a real estate authority. He specializes in the sales of bank owned homes in San Diego California. His experience has been instrumental in assisting his clients locate, and negotiate smart investments. If you would like to purchase a bank owned home in San Diego contact Mr. Elias at 800-474-1919 ext 5001.
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What a Difference a Point Makes.
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