I have to admit it. Some of you reading this ( or should I say both of you) might think that I am old. Ok, I’m 60, but I have come to believe that old is anyone who is 15 years older than I am. But I digress. What I am thinking about is interest rates. I am old enough to have borrowed money for a house at 14.25%. Nowadays, that would be a bad rate for a credit card. Rates right now are around 4.75% If you need a place to live, and we all do, quit renting and scrape the money together for a down payment and go buy a house.
When interest rates go back up, and they will, look me up and thank me for the heads up. Think of it this way, interest rates go back up to 6.75%—still way cheap. On a $100,000 note, the difference between current rates and 6.75% is $2,000 a year. If you stay in the house 10 years, that’s a savings of $20,000. That’s real money.
Get off the couch, and go to the bank and see what the mortgage officer says. The trip will make you money.
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