What a difference 1.5% can make!

Did you know that mortgage interest rates are still at historically low rates?  The forecasters last year kept predicting that interest rates would rise in 2015, but so far, as of mid February, that hasn't proved to be true.  Lenders are still reporting locking in low rates, and right now, they are seeing a spike in refinancing as well.  If you are still paying a 6% or higher interest rate, look and see what refinancing could do for you!  My favorite lender today said she was able to help a family get their mortgage payment down, AND they will be able to pay it off in just 10 years.  

So, what difference does a lower interest rate really make to a new buyer?  Would you believe with only a 1.5% reduction in interest rate, it might be an extra bedroom or a finished basement?  A house with upgrades versus one stuck in a previous decade?  When my husband and I were looking, we found a huge difference in houses at different approximate price points.  With interest rates this low, many people are finding the home they never imagined they could buy.    

Check out the charts below to see the difference.  Pay attention to the diagonal line in the middle.  Similar payments for each.  Different interest rates.  And a whole different price range.  In my market, those little dips in interest rates make a huge difference!