Have you been wondering if now is the time to buy a new home? You may just be surprised! Interest rates have continued to stay relatively low in the first quarter of 2020. At the start of the year, the 30 year-fixed-rate-mortgage was at 3.93%. As of February 27th, the benchmark 30 year-fixed-rate mortgage dropped from 3.75% to 3.71%, according to a recent Bankrate article.
While rates have been trending downward for some time, the most recent decline can be attributed in part to the coronavirus outbreak. Zillow’s Economist, Matthew Speakman explains, “Mortgage rates fell further this week, nearing their lowest levels since 2013 as fresh fears over the coronavirus outbreak sent investors sprinting to safer assets. Markets’ confidence in the containment of the virus was dented in recent days after a sudden surge in the number of cases outside of China prompted new fears of the global economy’s vulnerability to the outbreak. Treasury yields fell sharply as a result, with the yield on the ten-year note plummeting to all-time lows. Mortgage rates, which generally follow the ten-year note, fell too, but not by as much as these conditions would normally indicate.”
With rates lower than ever, now is the perfect time to take advantage of low mortgage interest rates by purchasing a new home! Homebuyers that qualify for a 30-year fixed-rate will pay approximately $460.85 each month for every $100,000 borrowed. If the rate were to increase by 1%, that amount would increase to approximately $519.24 for every $100,000 borrowed. Though the increase doesn’t seem like much, it adds up over time.
Let’s say your home was $350,000. Your approximate mortgage payment with an interest rate of 3.71% would be $1613 per month for a total of $580,680 over the course of the loan. In contrast, the approximate mortgage payment with an interest rate of 4.1% would be $1817 per month for a total of $654,120 over the life of the loan. That’s a $73,440 difference!
If buying a home is in your plans for the future, why wait? Take advantage of historically low mortgage interest rates by purchasing a home now. Triple Crown Homes has many great move-in ready homes to choose from in Evergreen Estates and Citra Highlands. We also have homesites available in a variety of communities throughout Marion County. Get in touch today to learn more!