Let's Compare Payments - For BUYERS

Let's say you have a mortgage of $250,000, property taxes are $3,000 a year and home owners insurance is $800 a year, and let's calculate this with an interest rate of today's 3.75% average (this is Principal, Interest, Taxes and Insurance [PITI], which is rolled into a single payment each month here in Idaho).  Your monthly mortgage  payment will be around $1,474.46.

Now we will keep the Principal, Taxes and Insurance and same, but change the interest rate to a modest 7%.  Your payment for the same $250,000 loan amount is now $1,979.92.  That's a $505.26 difference, and that is not even the 1995 average rate of 9%.

Remember, today's rate is today's rate.  Every lender works with the exact same number throughout the nation. If it is 3.75%, then that is the rate for every lender. Look at the APR for the cost of doing business with that lender. This number shows you annual percentage rate, or the annual rate of interest; the total interest to be paid in a year divided by the balance due.

The country is experiencing a remarkable, all time low in interest rate levels.  Just something to give perspective to the opportunity for someone looking at buying a home today!

Steve and Linda Slaughter
Your Idaho Double Agents
Coldwell Banker Tomlinson Group-Capitol Office
(208) 921-5143 (c)
(208) 921-5144 (c)
(208) 343-3393 (o)
slslaughter@coldwellbankertg.com