Missed the Tax Credit? You Can Still Save.
21 Jun2010
Filed Under Buying · Tagged: homebuyer tax credit, interest rates · Print This Article
For buyers who missed the homebuyer tax credit, don’t fret! Thanks to lower interest rates post-credit, waiting is not the worst thing you could have done.
Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage would have saved money by waiting until May. Here are the numbers:
April’s $280,000 (30-year fixed) mortgage, with a rate of 5.34 percent has a monthly payment of $1,561.82.
May’s $280,000 mortgage, with a rate of 4.625 percent has a monthly payment of $1,439.59 per month.
That’s $1,467 monthly savings, which ads up to a $44,003 savings over 30 years. The tax credit was a maximum $8,000.
Things aren’t always as they seem!
(These numbers come from Informa Research.)
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