Here’s something interesting. I saw a chart that someone did recently which told how much of a home you could afford if you were to spend under $1,000 per month on your mortgage payment. And let’s define the mortgage payment as principle and interest only, not including taxes and insurance.
In 1985, interest rates were 12.22%. Keeping your payment under $1,000 a month would allow you to, at that time, to purchase a home for $95,550.
So let’s move forward in time to the year 2000. Interest rates were considerably lower at that time. In fact they were at 8.29% average in 2000. So keeping that mortgage payment at $1,000 or less, would you to purchase a home for $132,500.
Now let’s take a look at our current times. We have interest rates under 4%. Again keeping the mortgage payments under $1,000, you can now purchase a home for $212,250.
Pretty interesting isn’t it?
So since the low interest rates are at the lowest point in many a year, right now would be a great time for you to act and purchase a home. It doesn’t matter if it will be your first home, or if you’re going to get something nicer and get the home of your dreams.
Now is the time to go ahead and do it.
Call Bunny and Art – we can help.