Saturday
11Apr2009
Lower Prices vs. Higher Rates
Saturday, April 11, 2009 at 2:41AM
Some more great info to share from Jencor Mortgage Corporation today.
If you're waiting for the right time to buy, consider that if prices drop but interest rates rise, you could end up paying more for a "less expensive" home.
If these rates sound high consider that 4.89% was the best 5-year fixed rate just 3 months ago and 5.67 was the best rate in November 2008. Interest rates can increase dramatically in a short period.
Get pre-approved and lock in your rate for 120 days while you're house-hunting.
If you're waiting for the right time to buy, consider that if prices drop but interest rates rise, you could end up paying more for a "less expensive" home.
| House Price | $400,000 | $380,000 |
| Monthly Mortgage @ 3.99% | $1,725 | - |
| Monthly Mortgage @ 4.89% | - | $1,842 |
| Monthly Mortgage @ 5.67% | - | $2,025 |
If these rates sound high consider that 4.89% was the best 5-year fixed rate just 3 months ago and 5.67 was the best rate in November 2008. Interest rates can increase dramatically in a short period.
Get pre-approved and lock in your rate for 120 days while you're house-hunting.
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