How the Loan Rates Affect Us

Banks are still loaning money and the interest rates are still low!  Currently, interest rates are staying in the low 4% range for a conforming loan ($417,000 or less).  Just a few months ago the same loans would have been 6% or even more!  Higher priced loans, known as Jumbo Loans (more than $417,000), also have a low interest rate in the low 5% range.  Would you like to see how that translates into a monthly payment? 

The Power of 1
LOAN AMOUNT $250,000   $325,000   $417,000  
MONTHLY PAYMENT with 6% int. (*P/I only)  $1,499  $1,950  $2,500
MONTHLY PAYMENT with 5% int. (*P/I only)  $1,342  $1,745  $2,239
P/I MONTHLY DIFFERENCE  $157 $205   $261
THIS IS HOW MUCH ADDITIONAL MONEY YOU HAVE      
TO SPEND ON A HOME WITH JUST A 1% RATE DROP!  $29,051 $38,063   $48,704

 

 

 

 

 

 

 

 

The 1% difference lowers your payment significantly if you refinance, or buys you more home for the same monthly payment!  Just think what that would get you: more bedrooms, a larger house, a better neighborhood, more amenities... maybe a shorter commute.  Please contact me at (206) 419-2833 if you'd like to talk more about this.  I can help!

 

* Principle and Interest.

These payment numbers are approximate and for owner-occupied properties.  Investment property interest rates may differ.