Mon, December 8th, 2008
RATES ARE DROPPING TO HISTORIC LOWS…

Have you been curious as to what the recent historic rate drop has meant to a buyer’s bottom-line?   Here’s a quick snap shot:

$400,000 Loan Amount on Friday (11/21) at 6.375% = P&I $2,496
$400,000 Loan Amount on Friday (12/05) at 5.125% = P&I $2,178 
That’s a $318  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $400K loan amount at 5.125% is comparable to a $348K loan amount at 6.375%

$300,000 Loan Amount on Friday (11/21) at 6.375% = P&I $1,871
$300,000 Loan Amount on Friday (12/05) at 5.125% = P&I $1,633 
That’s a $238  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $300K loan amount at 5.125% is comparable to a $261K loan amount at 6.375%

$200,000 Loan Amount on Friday (11/21) at 6.375% = P&I $1,248
$200,000 Loan Amount on Friday (12/05) at 5.125% = P&I $1,089 
That’s a $159  per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $200K loan amount at 5.125% is comparable to a $174K loan amount at 6.375% 

$100,000 Loan Amount on Friday (11/21) at 6.375% = P&I $624
$100,000 Loan Amount on Friday (12/05) at 5.125% = P&I $545   
That’s a $79 per month savings!!  OR   you can afford 13% more house with the same P&I payment!!
NOTE: a $100K loan amount at 5.125% is comparable to a $87,000K loan amount at 6.375% 

Please tell your sons, daughters, and friends, now is a great time to buy!  Have them give me a call, I am always available to answer their questions and update them on the Birmingham real estate market.  

Posted by Christina Rickey at 09:58 | Permalink |