Who Cares If the Interest Rate Went Up 1%? I Saved 500 Bucks!!

By
Real Estate Broker Owner with Bayou Properties Realty

 Buyers today need to be VERY careful sitting on the fence. If now is the time to buy for your family, go ahead and pull the trigger. Why should we? Won't sellers reduce their price the longer a home sits on the market? For those buyers paying cash, this might be a decent strategy. For the 90% of buyers who need a loan, let's examine why such a plan might actually cost you money.

 In order to loan money, lenders require that borrowers pay interest. So over a 30 year loan buyers have to pay not only the purchase price, but interest on the loan. Small fluctuations in rate can cost bowers 1,000 of bucks over the life of a loan. Let's examine a typical purchase price in our market...

Sales price---175,000                                     Sales Price---175,000

Interest rate--4.75%                                      Interest rate--5.00%

term-- 30 years                                             Term-- 30 years

Principle and interest--- 912.88                       Principle and interst-- 939.43

----------------------------------------------------------------------------------------------------------------------------

Difference each month in payment--26.55

Cost over 30 years---9,558.00!!!!

 

  When purchasing real estate sales price is only one piece of a very large pie. Make sure you have all the facts before you make a costly mistake! Looking to buy or sell a home?? Call Doug Rogers with Century 21 Millennium today at (318) 640-2121.

 

Posted by

Searching for a Top real estate agent in Alexandria Louisiana? Need help selling your Pineville, Louisiana home? Either way call Doug today!

Doug Rogers

Broker/Owner

Bayou Properties Realty

 

Bayou Properties Realty

130 Woodwind

Pineville, La, 71360

(318) 613-1994

 Equal opportunity housing. Doug Rogers is a licensed real estate broker in Louisiana

 

 

 

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Topic:
ActiveRain Community
Location:
Louisiana Rapides Parish Pineville Village Green
Groups:
Louisiana Lagniappe
Tags:
pineville louisiana real estate
alexandria louisiana real estate
doug rogers century 21 millennium

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