Borrow Today or Borrow Tomorrow?
REALTORS® have talked about the benefits of home ownership over renting and the interest rate environment on this blog before. But let’s talk cash. Your cash. Your hard earned income and what it buys you in central Indiana’s real estate market.
The average price of a home in central Indiana right now is $166,000. If you were to put 5 percent down on the purchase of a home costing $166,000 at the current 3.8 percent 30-year fixed mortgage rate, your mortgage would ring in at $734.81 a month. Even a modest hike in interest rates to 5 percent – which is called for by the end of 2015 – makes that exact same house payment $846.56 each month.
What would you do with an extra $111 in your pocket every month? Better yet, what could you do with $39,960 saved over the life of that loan?
Source: The Stats House® Mortgage Estimator. Find it under “Tools and Widgets” at www.thestatshouse.org