With being a Realtor in Boerne, I often run into many questions. The most frequent question I get is “Why is now the time to buy in Boerne?” There are many different approaches to answering this question but I feel the most valid way of answering this question is referring to the mortgage rates that are being made available to the public of Boerne.
When Boerne mortgage rates are low, more money is spent toward to principle rather than paid to the bank for the money that you are borrowing. Low mortgage rates also mean lower payments. For example, having a loan 30 year loan at 4.5% fixed interest rate on a home that cost $ 135,000 may give you a payment of $740.28 while having the same loan with an mortgage rate of 6.0% will raise your payment to $865.64. That is about another $125 out of your pocket per month that you will be spending on interest. That adds up to about $1500 per year that will be spent on interest. That’s $1500 that will not go toward your principle and more money that you will have to come up with. So as you can see, locking in at a decent mortgage rate is important in Boerne.
Most Boerne mortgage companies are offering about 4.5% mortgage rate for those with credit scores of around 620. For those below a 620 are (on average) locking in at around 5.0-5.5% mortgage rates. So because mortgage rates are so low, now is a good time to buy in Boerne because you will be saving money. If you wait, then chances are mortgage rates may go up and then you may be spending an extra $1500 per year and for most people that is not ideal.