Interest rates in Denver havedramatically increasedsince May 8th.
When I first got into lending in November 1990, a 30-year fixed rate mortgage loan cost 10.0% (Freddie Mac data). In November 2000, loan interest rates were 7.4% and in November 2008, they were 6.1%. Our recent low rates were artificially driven down by government stimulus, which will taper off, according to Fed Chairman Bernanke.
With all this seemingly bad news, mortgage rates are still at historic lows. Keep in mind, that the lower the interest rate, the more house you can own for less money. On a $300,000 loan, interest at 4.5% vs. 5.5% reduces a loan payment of principal and interest by $183.31 every single month. Of course, be aware that if your qualifying debt ratios are approaching the allowable limit, you may not qualify for your loan due to an increased higher interest rate and payment.
Additional costs? Increasing home prices?Ask a Live Urban Realtor about trends. For more information, visit http://mcedge.tv/16hfdi
Thanks to Josh Groner for writing this article. Josh is a Branch Manager, Senior Loan Officer with Universal Lending. Contact Josh at 720.296.1740 or visit CoMortgageFinancing.com
Socials