Last January, the average rate of interest on a 30-year mortgage was 3.62 percent. In January 2019, the average rate was 4.46.
Now, the average 30-year mortgage interest rate is 2.90.
That doesn’t seem like much of a difference — but it is. In 2019, financing $300,000 for 30 years at the average rate would give you a monthly mortgage (principal and interest) of $1,513 and you’d pay a total $544,656 over the life of the loan. Last January, that same loan would have resulted in monthly payments of $1,367 and you’d have paid $492,232 over 30 years.
People financing $300,000 this month would have a $1,249 monthly mortgage. The total cost of the mortgage would be $449,528.
What would you do with an extra $264 or $118 a month? Or $95,000 or $42,000?
That’s what these historically low interest rates mean — more money in our pocket.
They also mean you could buy more house today than you could have one or two years ago. If your budget allows for $1,400 toward principal and interest of a mortgage, last year’s $300,000 home turns into a $330,000 home this year. And if you can afford the $1,513 monthly mortgage a $300,000 home would have brought you in 2019, you can buy a $365,000 home this year. That’s more bedrooms, a bigger backyard, a theater room or perhaps that outdoor kitchen you’ve always wanted.
More purchasing power also means you can move to a community that gives you an enviable lifestyle with an excellent location, world-class amenities and a welcoming lifestyle. A community like Veranda.
Veranda residents enjoy a location minutes from Highway 69, shopping, dining and entertainment. Closer to home, residents spend lazy summer days at the pool with its signature climbing rock wall. Expensive gym memberships are a thing of the past, thanks to an on-site fitness center and the yoga lawn. Lasting friendships are made on one of our playgrounds. And an on-site director of fun keeps neighbors connected with an array of engaging events.
So, if you’re thinking about buying a home, why wait? See the homes our builders have underway now or talk to one of our builders about building a home from the ground up. After all, these low interest rates won’t last forever!