Taking advantage of today’s near record low interest rates could potentially save you thousands of dollars initially and tens of thousands over the life of your loan! For example, using a 4% interest rate, a $300,000 home, $4,000 a year in property taxes, and a 20% down payment your payments (PITI) would be roughly $1,550/month. If interest rates increased to 5% (with all other factors remaining the same), and you wanted to keep your payments around $1,550/month you would now be looking at a $270,000 home. Depending on your local market a $30,000 swing in purchase price can mean an additional bathroom, RV parking, a bonus room, etc.
