Thanksgiving Treat: Lower Mortgage Rates

Mortgage rates fallingIt’s pretty amazing that mortgage rates are near record lows while home prices are down.   It’s true, though, and it’s a little something extra to be thankful for this time of year.

Lancaster County PA real estate has not seen the ridiculous fluctuations that have hurt so many areas of the United States.  Yes, we’ve felt the impact of the “real estate bubble” of last decade but we have also been fortunate that the result in our area hasn’t been quite so tragic.  Helping matters is the fact that mortgage rates remain very, very low.

For example, it’s possible to get a 30-year fixed-rate home loan in most areas with an interest rate between 3.875% and just over 4%.   Mortgage payments including both principal and interest are around $477 for each $100,000 on the loan.

If you want to see what the mortgage would be for a property or properties you’re interested in, Google has a nice free mortgage calculator page that also compares rates from numerous financers as well:  Google Mortgage Calculator/Mortgage Comparison.   It’s very easy to use, too!

Rents have risen nationwide over the past few years to where the tables have turned and buying a home is a better option than renting in this economy.  In fact, Trulia has reported that buying a home is cheaper than renting in a whopping 74% of major U.S. cities.  Obviously this is different from market to market, but the above mortgage calculator will help you decide for yourself and your personal situation:)

A recent article on Lancaster Online has more details about this and also offers some basics to remember so you’re not blinded by what appears to be a “good deal’:

  • Safety and quality schools help home values in general.
  • Spend no more than 25% to 30% of your pretax income on housing and no more than 36% of your pretax income on debt payments (that means your mortgage plus credit card, auto, student and other loan payments).
  • Have a significant rainy day fund to cover home repairs, household emergencies and possible unemployment.

For more tips and hands-on help with Lancaster County PA real estate , give me a call at (717) 413-2749

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~ by bobenglishsellshomes on November 7, 2011.

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