The Advantage of Low Interest Rates for First Time Homebuyers
We are living in a special time—mortgage rates are at a historic 30 year low. This presents an incredible opportunity for the first time homebuyer. Low interest rates allow purchase of a more expensive home, for the same monthly payment, as a less costly home during times of higher interest rates.
Here’s this concept, using real numbers. With a $500,000 mortgage and a 30 year term at 3%, the total cost of the loan is $758,000, with a monthly payment of $2100. At a 6% interest rate, the same loan will cost $1,079,000, with a $3000 monthly payment. It’s hard to believe that 3 percentage points make such a big difference! The reality is that lower rates demand less of your hard earned cash. By locking in a low rate, less money is spent on interest, so the overall cost of the loan is less.
Buying your first home is an exhilarating time and a revered part of the American Dream. Currently, low interest rates make attaining that dream easier than ever before.
The real estate experts at Aspen Glenwood MLS understand the excitement of becoming a first time home owner. Put your requirements in our Search for Properties page, find a few favorite listings and fill in the Contact Agent forms. The listing agent will be glad to speak with you about the property. The Aspen Glenwood MLS includes all properties for sale in the Roaring Fork Valley and beyond.
Happy house hunting!