by Admin
14. December 2009 11:27
Marc Roth's article in BusinessWeek "If You Don't Buy a House Now, You're Stupid or Broke" has an eye-opening title, but it contains some very relevant information. As he describes in depth, interest rates are indeed at historic low levels, making this the chance of a lifetime to buy real estate.
Did you know that every quarter-point change in interest rates is the equivalent of approximately $6,000 for every $100,000 borrowed over the life of a 30-year loan? Cyclical trends suggest that when lower interest rates begin to rise, they rise quickly. So, to further his point, let's say interest rates climb from their current level of approximately 5% to 7% (they were close to 10% at the beginning of the decade). A $300,000 loan will cost you just under an additional $150,000 in loan costs over the lifetime.
If you have a steady job and good credit, plus throw in the new $6500 or $8000 tax credit incentives, this truly may be the gift of a lifetime. Click here to read the full story.
Interest Rate History Graph
