Did you miss taking advantage of the $8,000 first time buyer tax credit in April? While it certainly was a great deal that would have been nice to take advantage of, don't sweat it too much if you did. With the insanely low interest rates available right now compared to when the tax credit was in effect, you can save more than three times as much as the tax credit offered by buying now with these great rates.
An article out today in the Denver Post outlines how these low mortgage rates can outweigh the benefits of the tax credit. For example, someone taking out a $240,000 mortgage today at a 4.42 percent interest rate could save $33,287 in interest costs over the life of a 30-year loan. That's four times the $8,000 credit used by a first-time homebuyer who financed at 5.21 percent in early April.
And yet, despite these terrific rates and great savings, potential buyers aren't taking advantage. If you are on the fence about buying, then it is time to jump off. These rates are incredible and with the rates this low, you potentially can own a home you always dreamed of for the same price as the fixer upper you figured you would have to settle for. The savings per month, per year and for the life of a loan are real. Time to take action and lock in one of these great rates before they disappear forever.
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