Interest Rates Motivate the Home Market in Lakewood, East Dallas
January 14th, 2016 | by The Update
Photos and video / Briggs Freeman Sotheby’s International Realty
When the Federal Reserve closed out 2015 with the first increase in interest rates in nearly a decade, they may have opened the door to buyers and sellers in Lakewood and East Dallas considering a move.
“While interest rates are still low at about 4 percent, the change is motivating buyers who have been sitting on the sidelines,” says Bobby Sillers, Residential Mortgage Loan Originator at Ascent Home Lending. “Meanwhile, sellers see this as a great time to list a home, before rates climb higher and buying power shrinks.”
As recent as the summer of 2009, we saw interest rates holding steady at 6%.
On a $500,000 home with 20% down at 6%, the principle and interest payment is $2,398 per month.
On the same loan at a rate of 4%, principle and interest is $1,909 per month.
That’s a monthly savings of $488.
Most people stay in their home for about 5½ years, and at 4%, that savings is about $32,000.
In fact, to qualify for the same $500,000 home at 6%, you need to make $13,000 per year more than if you were securing a loan at 4%.
For more information on home loans, contact Bobby Sillers at ascenthomelending.com.
Homes currently available in Lakewood and East Dallas:
Learn more about living in Lakewood and East Dallas. Visit the Best Neighborhoods Site in DFW.
For more luxury homes throughout North Texas, see briggsfreeman.com. President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with offices in Dallas, Fort Worth, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.