I am still amazed at the low interest rates for a home mortgage.  I remember when I bought my 1st home in 1996 I had a mortgage interest rate at 8.75% and I was told how great that was.  Well it was considering there were times of 12-14% interest rates!

With interest rates in the 4.5% range; Home Buying is even more affordable !

I personally thought buying a home for just an $8,000 tax credit wasn't the best idea in the world.  Yes it's $8,000 - but that gets spent quickly.  Besides; buying a home is a huge responsibility.

However; buying a home (or really borrowing money to buy a home) at such a low interest rate is AMAZING!

Let's break it down by the numbers:

Let's say you can afford $2000 a month. (To simplify we will say taxes will be an extra cost).  Let's also assume you can put down 5% downpayment.

If the mortgage interest rate is 6% (still not a bad rate) you can afford about a $350,000 home.

NOW; if the rate is 4.5% - you can afford $415,000.

That's a huge difference.  Even better; if the home you really want is only $350,000;  your payments would be $323 LESS per month.  

Suddenly waiting to a buy a home seems crazy....

Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!

Office: 202-362-5800   Cell: 703.244.3971

Licensed in Washington DC, Virginia & Maryland.

Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW  Suite 100 * Washington DC 20016