Mortgage rates are the lowest they have been since I began in this industry in 2003. Incredible market volatility and a global financial system teetering on the edge of disaster have made institutional money flow into the relative safety of mortgage lending. With more money supply the demand naturally decreases and the rates are so low its silly.
Mortgage payments by loan size at that interest rate:
$300,000 = $1432
$400,000 = $1909
$500,000 = $2387
$650,000 = $3103
If you want to pay the property off in 15 years the mortgage rates are stupid low. 3.25% is par. Payments as follows:
$300,000 = $2108
$400,000 = $2810
$500,000 = $3513
$650,000 = $4567
This means that in LA, the costs of buying vs. renting are becoming close to even in many neighborhoods. Check out this slick NY times calculator for detailed info about that equation. This is the perfect storm for the savvy real estate buyer. A very soft real estate market coupled with all time low interest rates.
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1 comment:
It’s always interesting to see how timing and market conditions play such a big role in refinancing decisions. Many people don’t realize that even a small change in interest rates can significantly impact monthly payments and long-term savings. I also think comparing different refinancing options is very important before making any decision. For example, options like a DBS refinance home loan can be helpful for borrowers looking to restructure their existing mortgage at better terms. Overall, this kind of information is useful for anyone trying to manage their home loan more efficiently and take advantage of lower interest rates when they appear.
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