The going rate for 30 year fixed conventional mortgages right now is less than 5%. Met Life even quoted a rate of 4.5%.
With interest rates this low, it’s like a 25% off sale on real estate.
At 6.5% interest, (a historically low rate for mortgage loans) the Principal and Interest payment on a 30 year fixed loan with 20% down would be $1011 a month on for a $200,000 house.
At 4.5% interest (possible interest rate Today), the PI payment on a $250,000 home would be $1013 a month with 20% down.
Now in this scenario the property taxes and insurance would likely be less for the $200,000 home, and the down payment on the $250,000 house would have to be an additional $10,000, but the point is that home prices are incredibly affordable right now. Also consider that a current Utah Home prices in the $250,0000 plus range were substantially more a year ago. For the normal payment of a $200,000 house, you can buy what would have been a $300,000 house a year ago (and what will be again in a year or two).
If you are just looking to live with in your means, and don’t necessarily want a nicer home for the same cost, then these low interest rates can also just save you a load of money. That $200,000 home at 4.5% interest would save you $200 each month over the 6.5% interest rate.
It is a GREAT time to buy.…