Maybe, but you haven’t missed out on the savings!

Attention home buyers!  You are probably aware that the federal government offered tax credits on home purchases with contracts accepted by the end of April, 2010.  For first-time buyers that could have amounted to as much as $6,500.  That was certainly an incentive to buy.

If you think you missed the boat, consider this.  If you commit to a home purchase soon while mortgage interest rates are the lowest anyone in our industry can remember, you should be able to save nearly the same amount in interest as you would have received in a tax credit!  How so, you ask?

Here are the numbers for a very common scenario in the Toledo real estate market, and you can substitute different numbers to fit your family’s specific circumstances.  A $100,000 mortgage last September would likely have been made at an interest rate of 5.1%.  Today, you are likely to get a mortgage loan at 4.5%.  In our market, many people remain in their home about ten years.  The difference in the interest a homeowner would pay after ten years on those two mortgage loans amortized over 30 years would be approximately $5,848.  In other words, those who missed out on the tax credits can realize nearly the same benefit over time simply because of declining interest rates!

Of course the interest savings are much more significant over the life of the loan and definitely greater for higher mortgage amounts – this was simply intended as one typical example.  If you would like to calculate your own mortgage payment, The Danberry Co., Realtors and First Mortgage Consultants can help!  Just go to: http://www.danberry.com/mortgage_calculator/