The nati
onal average interest rate on a 30-year fixed mortgage is an astonshing 4.29%. Many buyers were obviously motivated by the tax credits last year and unfortunately the record-low interest rates get overshadowed. Are these rates a better benefit to make the decision to buy now if you are considering purchasing a home? Well let’s do the math and you’ll see that the truth is that these rates are the better benefit.
Let’s take a $100,000 loan at 30 years fixed today at 4.50%.
* Payment would be $506.69 (principal and interest)
* Total interest over the life of the loan would be $82,406.71 or $2,746.89 per year
That same loan of $100,000 at 30 years fixed just 1% higher at 5.50% would be:
* Payment of $567.79 (principal and interest) or $733.20 more per year
* Total interest over the life of the loan would be $104,404.04 or $3,480.13 per year
The difference in the cost of the two loans year over year would be $4,213.33 combining the additional payment amount and interest. Over the life of the loan the savings in interest is an whopping $21,997.33! So are these interest rates a better benefit to buyers today? Absolutely.
Start your Palm Coast or Flagler County, FL home search today at PalmCoastHomeShow.com or contact me so we can get your custom plan today.
Like the rest of the country, Flagler County and Palm Coast saw a dip in the number of home sale closing in July to the t
Many (including myself) had been wondering what effect the expiration of the Home Buyer Tax Credit Program would have on local sales. In all honesty, I had expected to see a drop compared to the year before this month (May 2010). I am pleased to see that performance remains strong in the area. 
