Missed Out on $8,000 Homebuyer Tax Credit?
Save Thousands More With Low Mortgage Rate
Mortgage national average drops below 5%, take advantage of low rates
CALABASAS, Calif., May 26, 2010 (BUSINESS WIRE) — According to reports, home sales increased in April and many speculate this rise was due to the expiring homebuyer tax incentive, which implies home sales may slow this month. At the same time, the national average on 30-year fixed rate mortgages dropped to just 4.98% this week according to Informa Research Services’ Interest Rate Review. With mortgage rates dropping, Informa Research Services, a subsidiary of Informa plc /quotes/comstock/23s!e:inf (UK:INF 377.00, +9.90, +2.70%) , suggests homebuyers could save thousands more over the entire term of the loan by financing their home purchase with a low rate mortgage (http://www.freerateupdate.com).
Despite missing out on the tax benefit of buying a home before the April 30 deadline, finding the lowest rate to finance a home purchase can save homebuyers considerably more. While the expired tax incentive offered up to $8,000 for purchasing a home, securing a low rate can save homeowners much more over the term of their loan. For instance, when purchasing a $350,000 home (financed with a $280,000 mortgage carrying last month’s average rate of 5.34%), a homeowner will pay $562,253.57 over the term of a 30-year fixed rate loan ($1,561.82 per month).
However, this same home purchase could be thousands less over the term of the loan if it had been financed at a rate of 4.625%, as offered by AimLoan.com. By using a mortgage with a rate of 4.625%, a homeowner would pay $518,252.63 over 30 years (or $1,439.59 per month). Not only does this lower the monthly payment by over $120, but by the time the home is paid for, it will have saved the homeowner over $44,000!
Consumers looking for the lowest mortgage rates currently available in their area should use rate tables featured on sites such as Owners.com, FreeRateUpdate.com, and Banks.com. These sites feature tables that are populated with loan information from various lenders, which makes comparison shopping quick and easy.
Contact Kyle Langenberg at Valley Bank about questions regarding mortgage rates