Growing-Equity With Your Interest Rate
Growing-Equity With Your
Interest Rate
One of the best ways to grow equity value in your home is with a lower interest rate. With the rates being where they are right now, this may be a great time for you to refinance your home. Whether you’re doing FHA, conventional USDA, the rates are at a good place.
Growing-Equity With Your Interest-Rate
We did a little bit of math for you just so you can have an idea because sometimes most people are probably like, “I don’t understand the difference between 4.5% or 4.25% versus under 4% or what that means to a buyer.”
We did some math because it actually ends up being a big difference:
This example is based on a $250,000 mortgage.
$250,000 over a 30-year term at 4.25% interest rate.
Your payment before taxes, insurance and so forth, it comes out to be $1,230 a month.
Today’s current interest rates are dropped down to 3.89% when you factor that in, the payment goes down to $1,178.
Now, while $52 a month doesn’t seem like a big deal if you did the math comes out to about $624 a year.
If you look at the big picture of it, $52 a year, if you back into that number, $52 a month is $11,000 in more features that you can put in your home. You could do a third car garage. You could do a number of things when you refinance at a lower-interest-rate.
What Do You Want Your Monthly Investment To Be
We get people who come in and they’ll tell us, “Oh, I’m prequalified for this dollar amount,” and Shelly and I are both quick to just quickly say, “Hey, that’s great, but what do you want your monthly investment to be?”
Once they tell us what they want their monthly investment to be, we try and back into that number too because ultimately you can be pre-approved for all the money in the world, but when it comes down to brass tacks, you want your payment to be at a specific budget number and we want to make sure you get to that number without going over.
We have the right lenders on hand here at any of our locations. Even if you don’t buy a home with us, our lenders are phenomenal.
They are all our preferred lenders and we use them because they really go the extra mile for our buyers.
They’ve earned the right for us to hand out their business cards. I mean, we don’t just hand out anybody’s business cards. These guys have really proved to us that they know what they’re talking about.
About Cannon Builders
Cannon Builders is based in Troy, MO, and serves Lincoln County and Warren County. They have 20-floor plans to choose from ranging from 1,000 to 2,277 square feet, including ranches, 1 ½-story home, and 2-story homes. Whatever your lifestyle and your budget, Cannon Builders can accommodate you. Contact them today.