Tax Credit Buyers VS Current Buyers
Did you have clients who missed the tax credit dead line? It may have seemed like a big mistake but waiting could have been the smartest thing to do.
Why you ask? Well interests rates have fallen so dramatically since April 30th that the typical purchaser of a $350,00 home financed, with a $280,000 mortgage would have saved a bundle by waiting until May.
April's average rate of 5.34% a home buyer would have locked in a 30 year fixed rate loan with a monthly payment of $1,561.82 That same buyer could have snagged a 30 year fixed rate loan at the rate of 4.625% in May and paid $1,439.59 per month. That adds up to a $1,467 annual savings and over 30 years it's a total of $44,003
To sum it up both programs are (were)great, it's nice to know even if we miss out on something another door always opens!
Why you ask? Well interests rates have fallen so dramatically since April 30th that the typical purchaser of a $350,00 home financed, with a $280,000 mortgage would have saved a bundle by waiting until May.
April's average rate of 5.34% a home buyer would have locked in a 30 year fixed rate loan with a monthly payment of $1,561.82 That same buyer could have snagged a 30 year fixed rate loan at the rate of 4.625% in May and paid $1,439.59 per month. That adds up to a $1,467 annual savings and over 30 years it's a total of $44,003
To sum it up both programs are (were)great, it's nice to know even if we miss out on something another door always opens!
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