Pensacola Real Estate – Mortgage Rates
The economy may seem really bad right now for Pensacola Real Estate but PensacolaHomeCenter.com is going to show you how you, a buyer, can benefit from current mortgage rates that are near all-time lows and very low home values. Lets take a look at the current interest rates. A 30 year fixed conventional loan is at 3.52%. Better than that is a 15 year fixed loan that is at 2.76%. Can you imagine a 18% interest rate like it was back in the late 70’s and early 80’s? If you are in the market to buy a home in Pensacola Real Estate market, you are very lucky. PensacolaHomeCenter.com buyers have the benefit of having very active agents, Darryl and LaDawn Singleton, who know how to get you connected with the right lender in the Pensacola Real Estate market. Buying now through PensacolaHomeCenter.com and taking advantage of the low rates is quite simply a smart move.
Pensacola Real Estate – Interest Rate vs Payments
When I bought my first home in the Pensacola Real Estate market, I didn’t even think of what the interest rate is and if it was a good time to buy or not. I just went to a lender and told them that I needed a loan. Making the biggest financial decision that I ever made was done without much pre-planning. I am going to show you how different interest rates can make a loan payment increase very quickly. I could give you a math formula to calculate the different payments at higher rates, but I myself would not do the math. Here are some simple figures to give you an idea of how interest rates on a 30 year fixed loan would affect your household budget. PensacolaHomeCenter.com has a convenient mortgage calculator feature on every listing so you can calculate what your Principal (P&I) will be.
Loan Amount Interest Rates P&I Payment
$100,000 3.52% $450.16/mo
$100,000 4.52% $507.88/mo
$100,000 5.52% $569.04/mo
$100,000 6.52% $633.38/mo
As you can see, with just a 3% increase in the interest rate the household budget would take almost a $200.00 hit. How long will the interest rates stay this low? Who knows, but I can assure you that it will not stay this low forever. A interest rate of 6.52% would still be a pretty good rate, but not nearly as good as the current rate. Do you see just how much you can do with your money by purchasing now at a low rate?
Pensascola Real Estate – Residential Home Prices
Just turn on the television to any news show and wait a few minutes and something about home prices will said. Why is it so important how the Real Estate market is doing? Think about all the items that go into building a home and furnishing it. If the demand for homes go up then the demand for all the building components and furnishing goes up also. The higher demand equals more jobs and a better economy.
Home prices in the Pensacola Real Estate market have started to tick upward from lows of the past decade. Buyers have been buying bigger homes for less money. Just as with the interest rate, the same applies to home prices. The higher the price per square foot the small home buyers are able to afford for the same price. Here are the some simple figures to show you just how this works out. Let say that you, the buyer, started looking at PensacolaHomeCenter.com for a home. One thing that most buyers to is figure the price range they want to be within and start there. Lets say you are looking to purchase a home for $200,000. Here is the difference in the size of home based on the price per square foot.
Purchase Price $ per Sq Ft Size of Home
$200,000 $70 2857 sq ft
$200,000 $80 2500 sq ft
$200,000 $90 2222 sq ft
$200,000 $100 2000 sq ft
Again, you can see just how fast little changes can and will affect the size of the home you buy. Combine the low rates and low prices to get a great deal for buyers. All this can and will change. If you are thinking of buying Pensacola Real Estate, now maybe one of the best times to buy. Visit PensacolaHomeCenter.com to begin you search for next home in the Pensacola Real Estate market.