We all know that interest rates are low. We have been hearing or reading about it for quite some time, and we may zone out without figuring the true value. The fact is, if you have good credit, you would be surprised at just how low your monthly payment on principal and interest could be.
For comparison, lets look at a $75,000 loan.
Take for instance, an FHA loan, at 4.375%, 20 years = $469.44, 30 year = $374.46.
Or a 10 year ARM, at 3.75%, figured over 20 years = $444.66, 30 year = $347.33
Or the 2.99% 5 year balloon, figured over 20 years = $415.57, 30 year = $315.79.
On a $100,000 loan, these same calculations would yield payments of $625.92 to $421.06.
These types of rates can be found locally from our area lending institutions. There are also some programs that require very little down payment. For more information, please see your local lender or give me a call. Lower monthly payments allow you to pay off debt quicker or purchase a higher value home.
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