January 12, 2009

New Year means Good News in 2009: New record low Mortgage Rates

Happy New Year everyone! I just read that mortgage rates dropped to a new record low! The Wall Street Journal reported, "The 30-year mortgage rates averaged 5.01 percent this week, which is a drop from last week's 5.1 percent. Last year at this time, rates averaged 5.87 percent."

Combined with more affordable home prices, it's much easier to buy a home! Let's do the math based on these averages:

For a monthly payment of $1,500, the approximate loan amount you could get for a 30-year fixed loan in:

January 2009 at average 5.01% = about $279,000

January 2008 at average 5.87% = about $253,000

So you could borrow in average $26,000 more now for the same monthly payment!

For help with knowing how much more house you can afford this year with that extra $26,000 loan, call me at 508-776-5378 or visit http://www.melaniecauchon.com to get free access to all MLS properties.

And do not forget that if you wait too long, it could also go back up!

Make 2009 a Happy New Year now and get into your own home!

Posted By: Melanie Cauchon