Mortgage Rate Update

| February 11, 2011 | 0 Comments

Let’s Talk About Mortgage Interest Rates Again!

Mortgage Interest Rates

Well, interest rates increased to over 5% in December, 2010. Then they retreated to a little under 5% in January, 2011. Now, they are moving back up above 5% again. Refresh your memory with a review from my January 10th post.

First of all, mortgage rates at 5% are near historic lows. And yes, they may retreat again to under 5 % again. BUT……

What if they don’t? What if they rise further? As the interest rate increases, so does a home buyer’s mortgage payment. A small mortgage rate  increase of .25% increases a mortgage payment approximately $32.00 per month on a $200,000 mortgage loan. The options are either paying $32.00 more per month, borrowing approximately $6,000 less in a mortgage loan or paying $6,000 less in the price for a home just because of an rate increase of .25% relative to a $200,000 mortgage loan. Not too pleasant in thinking about if you are currently looking to purchase or are planning to look for a home shortly, is it?

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About the Author:

David Fialk The above article was written by David Fialk, REALTOR, Broker Salesperson, Coldwell Banker Residential Brokerage, Iselin, New Jersey and regularly posts real estate articles of interest for home buyers, home sellers and home owners. David can be reached via email or by phone at 732-283-3400 or at www.DavidFialk.com. Licensed since 1971, David has helped over 1800 families move across town, across the state and across the country and specializes in the towns of Iselin, Colonia, Edison, Woodbridge, Avenel, Fords, Sewaren, Port Reading, Keasbey, Carteret and Metuchen in Middlesex County, New Jersey. Planning on purchasing real estate? Thinking of selling your home? For real estate information ”You Can Rely On, Contact the REALTOR You Can Rely On”.