Low Interest Rates = Big Savings for New Home Owners

Are you considering leaving the world of renting and making the the leap into home ownership?  Or maybe you are a seasoned home owner who is thinking about finally buying or building your new dream home.  In either case, you are likely starting to realize that there has never been a better time to buy a new Wisconsin home than right now.

It is no secret that mortgage rates have dropped to historic lows.  Rates on 30 year fixed mortgages have gone from 6.5% to under 5% over the last six months.  This is great news for would be homeowners looking to make a move into a new home.  If you are a first-time home buyer, the news is better still because the federal government has introduced an $8000 tax credit to be awarded with the purchase of a home.  For more information on the federal housing tax credit, please visit our recent blog posting. 

 

The combination of factors has resulted in a significant decrease in the monthly mortgage payment for 2009 homebuyers.  Below is a snapshot of the monthly savings on a $200,000 mortgage amortized over 30 years:

 

Mortgage amount:	$200,00	$200,000	$192,000
Interest Rate	6.5%	5%	5%
Monthly Payment	$1,264	$1,073	$1,030
Annual Savings	—	$2,285	$2,801

 

 

 

 

As you can see, the difference in your monthly payment between a mortgage at 6.5% and 5% is quite significant.  A savings of over $190 would be realized per month, which equates to nearly $2,300 a year – or almost $70,000 over the life of your loan!  The last column shows how first time home buyers (or any person who hasn’t owned their principle residence in three years) can benefit even further from taking advantage of the recently passed Federal Housing Tax Credit. 

In addition to the money you’ll save by taking advantage of today’s lower interest rates and tax credit, Brookstone Homes is currently offering several promotions to help get buyers through the door.  Any person who purchases a completed and move-in-ready Brookstone home will benefit from having No Mortgage Payments for Six Months (see website for details).  Customers who choose to have the home of their dreams built from the ground up will get to choose between $7,500 in free options/upgrades

or a free three car garage.

Whether or not you choose to buy or build your next new home from Wisconsin’s largest and most respected home builder, Brookstone Homes, we encourage you to take the time and really consider all of the reasons why there has never been a better time to buy a new home.