Can you get a mortgage for less than 3%? Yes – right now you can find conventional mortgages that start with a 2.
Tap tap tap. Is this thing on? It’s been a long time since I blogged
with any regularity at all, but today seemed an appropriate day to dust things off and get back into the saddle. I was speaking to a group yesterday and was asked about the blog, where I was reminded that it had been far too long since I had done this blogging thing. So … let’s get back to this, shall we? Now’s as good a time as any.
Much of the conversation with buyers lately has centered around what the market is going to do. It seems everyone wants to know two things – (1) what’s the market going to do, and (2) when are rates going up? At the risk of sounding flippant (and failing miserably, I’m sure), my response is usually “who cares?“. I mean, if you’re a serious buyer and the right house is on the market, in your price range, you buy it – right? And with rates ranging somewhere between 3.87% and 4.63%, is 1/8th of a point going to make that much of a difference? When you’re ready to buy, you buy – there’s no sense trying to time or “game” the market.
I’m not a lender. I don’t play one on TV, I didn’t stay at a Holiday Inn Express last night, and I’m not sending three easy payments of $19.99 to be a lender. But when I see low interest rates, I pay attention, because if I know where the low rates are than my clients are probably interested.
The title of this post is a bit shocking, no? I pulled it from an article posted at BusinessWeek.com last week entitled “If You Don’t Buy A House Now, You’re Stupid Or Broke“. Do I believe you’re broke? I hope not. Do I believe you’re stupid? No, although I’ve certainly been called worse. Nevertheless, the title still makes you stand up and take notice.
Mike: Why was I quoted a rate of 5% yesterday and 5.25% today? Do rates change that fast?
Ever wanted to know how to calculate your monthly payment? Well, Dan Green has provided four great formulas for calculating things like principal and interest payments, or how much you’ve paid in interest in a given month or year. You can see his whole post here, but I’ve put a quick screenshot of the principal and interest formula below.
It seems I keep getting asked “how low are interest rates right now?“, and I keep getting quizzical looks when I respond: