With interest rates falling it is almost like homes are on sale!

Interest rates are very appealing right now and continue to garner attention from prospective home buyers and fellow home owners looking to save money. As the interest rates fall, it is almost like homes are on sale when compared to rates earlier in the year.

For example:

If you had thought about buying a home in the summer priced at $200,000 putting 5 percent down when the interest rates for a 30 year fixed rate mortgage were around 6.25% you could expect a monthly payment with principal and interest based on good credit at $1,169.86 a month.

This week one lender had an interest rate with certain parameters at 4.625% on a 30 year fixed rate mortgage. That same house would have a monthly payment with the new interest rate of $976.87 a month.

That is a savings of $192.99 a month, $2,315.88 a year, and $69,476.40 over the 30 years of the loan!

So if you are considering buying a home, right now it is almost like everything is on sale with the lower interest rates. Call a realtor in your area or if I can be of further assistance, email me at todd@toddnelson.com with your questions.

Treasury Actions Could Save Home Buyers and Home Owners Thousands!

If you are a home buyer who has been on the fence about buying a home, then your decision may have just gotten much easier with actions that may occur in the coming weeks. The treasury department may implement a plan that would have it directly engaging in the mortgage industry to dramatically force down interest rates and as a result stimulate the moribund housing market. This is based on sources familiar to the proposal.

Under the plan, the treasury department may buy securities that finance newly issued loans for home purchases, according to the sources familiar with the proposal. Mortgage lenders would have to set exceptionally low interest to a rate, for example, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

According to sources who spoke on condition of anonymity because the plan has not been finalized, these securities would be purchased primarily from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders.

For a home buyer wanting to finance $100,000 on a 30 year fixed rate mortgage at 4.5 percent your payment would be $506.69 a month including only principal and interest. This is a savings of $92.86 a month based on rates that were around 6 percent recently. Of course, the savings increase with a larger loan amount. This could allow home buyers to even afford more home if they want.

With the possible changes in the mist. The future of the real estate industry is beginning to look very promising for the coming year. This change could be the boost that our industry has needed. Email me with any real estate related questions at todd@toddnelson.com.