Great rates of 2011

on Friday, 30 December 2011. Posted in Grand Openings

Great rates of 2011
As the year winds down to an end, we look back to what made 2011 a great year.  2011 was a year that brought one of the lowest interest rates in history. The interest rates of 2011 are a clear sign of how the affordability in the home buying marketplace is at fantastic position relative to many other times in the recent and distant past. When looking at the rates of today compared to approximately 8 years ago, it is amazing the difference in purchasing power on a new home. Now compound this with great values of new homes in today's market, buying looks to be a great decision. Read below from a blog that was posted by KCM to see more details about today's great rates.

From KCM Blog:

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.

According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:
cost-price-1024x665

That means you save $285.30 a month, $3,423.60 a year and $2,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is less.

Bottom Line

This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

Reprinted from the KCM Blog - www.kcmblog.com



For more information on new homes in Pasco, Kennewick, Airway Heights and Spokane, Washington or Post Falls, Coeur d’ Alene, and Hayden, Idaho please visit us online at www.vikinghomes.com.

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