This past week, we are asked to assist a first-time homebuyer (Some of our favorite people!) with financing the loan on his first home. He needed a low down payment, so we suggested FHA financing. FHA requires only a 3 ½ % down payment, and allows loans up to $756,600.00. Further, the entire down payment may be in the form of a gift.
All of the above was very good news to our buyer, but the best news was yet to come. FHA interest rates have dropped dramatically in recent weeks. Currently, you can get an FHA loan at ONLY 2.875%. That’s for a 30 year fixed rate loan. This is the first time in the over 41 years I’ve been in this business that I’ve seen interest rates this low! In the last several months, rates had been as high as 3.75%. To give you some perspective, for a $500,000.00 loan, the difference in payment would be $240.00/month. Conversely, you could borrow $557,000.00 and have the same payment you would have had at the higher rate. Or, you could buy much more home for the same payment. Maybe get that extra bedroom or the attached garage or yard that you didn’t think you could afford.
We have been seeing rents rise dramatically in recent years. Isn’t it time to consider purchasing, especially in view of our amazing low interest rates.
Please pass this on to any first-time buyers, or anyone ready to make a move. You don’t have to be a first-time to take advantage of these great interest rates.
Please call 949-500-6365, email Frank@FrankDiLauro.com, or through Instagram FrankandSusan for all your real estate needs.