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Home Buying Tips | Low Mortgage Rates

October 17, 2010 By Doug Francis

The Innis House, Fredericksburg VA
Image by DougFrancis via Flickr

It seems like every week there is an announcement that home mortgage rates are at an “all-time low”, but this weekly headline is starting to get a little stale for most home buyers who are locking-in the mortgages as late as possible before going to closing. The “rate float option” gives home buyers the option of risking today’s low rate with the expectation that they will lock-in at a lower rate in the future.

This isn’t about mortgage rates

Well that is almost true, because it is important to point out that we are looking at financing a long-term “investment”. Your mortgage is a debt and the interest that you pay is an annual tax deduction.

If you are looking to buy a home then you really need to examine how long you will live there, or what your life will look like in five or ten years? Yes, this is time for long-term planning, to think big, and to consider a house that you will still fit in ten years from now. With rates this low, you are able to afford a better house than you would have been able to buy two years ago

“… own the best house you can afford” – Life’s Little Instruction Book

You are probably a wiz at this by now, but let’s assume you are getting a mortgage for $417,000 on a cute Vienna VA house and hope to lock in a 30-year rate, do you know how much the interest payment will be every month?

Interest Rate x Loan Amount = Annual interest ÷ 12 = Your Monthly Interest

4% x $417,000 = $16,680 ÷ 12 = $1,390 a month in interest

4.5% x $417,000 = $18,765 ÷ 12 = $1,563 a month in interest

5% x $417,000 = $20,850 ÷ 12 = $1,737 a month in interest

6% x $417,000 = $25,020 ÷ 12 = $2,085 a month in interest

What I am suggesting here is that you buy a home for a life that is bigger than your life is today because long-term money is so cheap. Yes, I am suggesting skipping that starter home. These low rates should really make you consider buying as big a home as you can afford keeping in mind your future needs and quality of life.

You may never move again

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Related articles
  • You: Mortgage rates fall to another record low (washingtonpost.com)
  • UPDATE 1-U.S. mortgage rates at new record lows-Freddie Mac (reuters.com)
  • U.S. 30-year mortgage rates fell in week – Zillow (reuters.com)
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Filed Under: Blog, Featured Posts, Home Buyer Tips Tagged With: buyer agent, doug francis, Home Buyer Tips, real estate, Vienna Virginia

About Doug Francis

Doug has been a successful Realtor helping clients buy and sell homes, specializing in unique homes across Northern Virginia. He created this WordPress blog. Outside real estate, he was featured in a commercial for Verisign's "Where the World Clicks" campaign, and was quoted in Money Magazine's Best Places to Live issue which ranked Vienna the #3 best place to live. Busy since 1991. Follow @dougfrancis on Instagram. ~ "Morning coffee is a must to keep it interesting."

The first thing I do when meeting a new client is to get a good idea of what they hope to achieve. I bring more than 25-years of hands-on real estate experience to the table and always come ready to share insights and give recommendations.

This isn’t a part-time gig for me. So, when I’m giving perspective, answers, or strategy, you’ll know I’m going to focus on your real estate goals.

I started this site as a smart resource for my clients, but it is okay for you to keep reading because it will give deep insights since my posts are based on actual experiences.

My background, I’ve been an active licensed agent in Virginia for 25 years, work at TTR Sotheby’s International Realty in McLean, and sell homes in all price ranges. From condos to awesome custom homes.

Interested in getting help?

Send your questions to doug@dougfrancis.com or call me at (703) 304-6827 to discuss your plans. Cheers!

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Then one day you find that, 10 years have got behind you… ~ Time by Pink Floyd There are moments in time such as when your car is 10-years old, your dog is 10, or your kid turns 10, that you realize time passes quickly. Today, 10 years ago, I published my first blog post […]

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About Doug Francis

I am a Realtor with TTR Sotheby's International Realty® just outside Washington D.C. in Northern Virginia. I have been a full-time Realtor licensed in Virginia since 1991, and cover a big territory specializing in the Vienna real estate market and custom homes for sale.

I have unique knowledge of digital real estate marketing ~ and my marketing starts here. My elite clientele has been attracted to my results-oriented strategy for years, and I am accepting new clients now.

Thanks for reading... and feel free to contact me at 703-304-6827 or send me an email at doug@dougfrancis.com anytime!
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TTR Sotheby's International Realty
6723 Whittier Avenue McLean, VA 22101

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Typos and excessive use of commas are my editor's problem. This material can only be used with my written permission. All articles are the opinions of Doug Francis. Copyright 2018.

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