What Today’s Low Interest Rates Mean for You

Interest rates have been a hot topic for some time now, and so today we’re going to delve a little deeper into what they mean for our market—and for you.

Over the last year, rates have dropped by a full point. For homeowners, this creates an unparalleled opportunity to refinance and significantly reduce one’s monthly payment. It also opens up the chance for homebuyers to lock in an incredible rate on new home purchases.

Studies show that Seattle homeowners tend to stay in a given home for about 11.7 years, which is just shy of the nationwide average: 12 years. Here in Bellingham, this number is closer to about 10 years.

We share this information with you because that last figure is the one we’ve chosen to use for our analysis on how current interest rates could impact the average homeowner’s monthly payment over time.

Here is what we found:

If a homeowner purchased a home for $500,000 back in September of 2018, when interest rates were at 4.75%, your monthly payment would total to about $2,086. Homeowners who purchased a property at that same price this September at a rate of 3.75%, meanwhile, would see a monthly payment of just $1,852. This constitutes a savings of more than $2,800 a year, or over $28,000 in a decade.

So what does this mean for you? Well, as we mentioned earlier, it’s a great time to buy or refinance.

If you have any other questions or would like more information, feel free to give us a call at (888) 713-3056 or send us an email at Info@JohnsonTeamRealEstate.com. We look forward to hearing from you soon.

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