If you need assistance, please call 914-290-5258

Yesterday's mortgage rate blog: We forgot to mention something

Tuesday, July 7, 2020   /   by Vanessa Saunders

Yesterday's mortgage rate blog: We forgot to mention something


By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.

I wrote a blog yesterday about how mortgage loan interest rates set a new all time low record last week. The story we told was about how such attractive financing, paired with the low number of homes for sale in the Hudson Valley and a predicted up-tick in home prices this season should be great news for sellers. We forgot one thing.

Low mortgage rates are also great news for buyers. Even first time buyers. Here's why.

Home prices may be heading for a rise right now, but buyers can offset paying a little extra for a home by the astonishing amount they'll save by financing now.

What many people often forget when they decide to buy is that the price they agree to pay for a house at contract isn't how much they'll actually pay. Leaving aside taxes and other ancillary home ownership expenses, what they actually pay is the amount they'll borrow for the home AND the interest they'll pay on their mortgage. The amount can be quite a shock to anyone not familiar with an amortization calculator.

Here's an example. Let's say you're borrowing $300,000 to finance that home of your dreams. A 30 year fixed rate mortgage at last week's Freddie Mac average of 3.07% will cost you $159,429 in interest if and when you pay it off by June, 2050. Compare that to a mortgage at say... 5.34%, which was the top average rate last year. That mortgage would run you $302,414 in interest paid for the life of the loan. By buying at today's rate, you could end up NOT spending $142,994 had you financed at 5.34%

Told you you'd be shocked. And it makes the few thousand extra dollars a buyer may pay now look like small change in the larger picture.

Here's the question we ask buyers who balk at today's prices and ignore today's mortgage rates. Would you like to have $142 grand in your back pocket in thirty years?

We would.

CONTACT US to help you find the answers to any questions you may have about buying or selling a home in the Hudson Valley. Looking for financing? Contact Barry Goldenberg, Luxury Mortgage to find home financing that's right for you. Direct Line: (516) 393-4470. Mobile Line: (516) 398-9511

 


  hudson valley real estate, hudson valley property, hudson valley home, buying a home, home investment, 'urb to 'burb, mortgage rates, first time home buyer, financing, mortgage

Global Property Systems
Vanessa Saunders MBA MIMC CIPS - NYS RE Principal Broker
56 Lafayette Avenue Suite 320
White Plains, NY 10603
914-290-5258


NY.png

The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2020 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.
The data relating to real estate for sale or lease on this web site comes in part from One Key, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the One Key, Inc logo or an abbreviated logo and detailed information about them includes the name of the listing broker.

The information appearing herein has not been verified by One Key, Inc or by any individual(s) who may be affiliated with said entities, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose.

©2020 One Key, Inc. All rights reserved.

The data relating to real estate on this website comes, in part, through the IDX of the Multiple Listing Service of Ulster County, Inc. Real estate listings held by brokerage firms other than Vanessa Saunders - Global Property Systems are marked with the IDX logo and detailed information about them includes the name of the listing broker.
This site powered by CINC: www.cincpro.com