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You know that today’s historically low interest rates mean
it’s a great time to buy a home, but did you also know that these rates in the
3-4 percent range can translate into building home equity more quickly than
ever?
It’s true! That’s because lower rates result in a high percentage
of each mortgage payment applied to your loan’s principle.
It’s amazing how things have changed since I started in the
real estate business in the 1990s here in the Washington, D.C., area. Back
then, interest rates were in the 7-8 percent range and about 7 or 8 percent of
each mortgage payment went toward principle.
Today, 30 percent or more of a payment is applied to
principle. Not only that, payments, in absolute dollars, are about 70 percent
of what they were in the ’90s. It’s much easier now to afford the home of your
dreams.
Call or email us, and we will be happy to discuss the
implications of these low interest rates for you as a home buyer or seller.
Truly, it’s a great time to buy investment properties or a primary residence.
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