Archive for July, 2010

Home Mortgage Interest Rates May Be At Lowest In A Lifetime

Posted: July 30, 2010 in Uncategorized
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Just 11 short years ago, I bought my first home, a two-family property that I moved into. My interest rate for that home was 9.5%. My monthly payment, minus taxes and insurance was over $1,800 per month. I had Tenants that lived in the smaller unit, paying $950 per month and they also paid for their own utilities, so my out of pocket expense was just over $850 per month, plus taxes and insurance, water and utilities. Not bad for a 3 bedroom, one and a half bath apartment. The total amount for the life of that mortgage was in the ballpark of $650,000, or a little over $1800 per month for 30 Years. How much did the house cost, you might ask? Just under $165,000. NOW do the math. That’s right, I was paying almost $490,000 above the cost of the house. I have since refinanced the home and am now paying a comfortable 5.5% and paying around $1200 per month, this time with taxes included. Total savings for the life of the refinanced loan…  Over $200,000 Dollars!

Today’s interest rate for a qualified home buyer is around 4.5%. I have spoken with experts who say that the average interest rates will most likely rebound to a normal 7 to 9%.

We are in a Buyers market. There is plenty of inventory, the prices of homes have dropped dramatically since the housing market bubble burst and there are deals to be made, the likes of which we may never see in our lifetimes again. The chance to get your $8,000 home buyer tax credit from the government may be gone, but with the Feds keeping interest rates low, that’s just chump change.

I haven’t even mentioned the appreciation value of the home 30 years from now!

More informational Video’s can be found on my website JimHurleyRealty.com

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