Interest rates have decreased yet again to record lows this month, which means lower mortgage payments and greater buying power when you decide to purchase a new home. Read on, and we’ll explain how low rates can help bring you closer than ever to owning your dream home. And again, to reiterate, interest rates have fallen even further past those that are discussed below!
OK, let’s get into our example. Last May, when interest rates were at 4.375%, a $400,000 home purchased on a 30-year fixed-rate loan with 20% down would mean monthly payments of $1,598. This May, when rates reached 3.25%, that same loan’s monthly payments would have been $1,393.*
* Interest rate is as of 05/13/2020. Monthly mortgage payment of $1,393 is calculated on a sales price of $400,000, an interest rate of 3.25% (APR 3.32%) for a 30-year fixed, owner occupied, conventional mortgage, with a 20% down payment and a purchaser with a credit score of 720. Monthly mortgage payment of $1,598 is calculated on a sales price of $400,000, an interest rate of 4.375% (APR 4.454%) for a 30-year fixed, owner occupied, conventional mortgage, with a 20% down payment and a purchaser with a credit score of 720. Monthly mortgage payment includes principal and interest only. Property taxes, homeowner’s insurance and HOA fees are not included and may apply. Flood insurance may be required depending on the location of the home. Interest rate quote is not guaranteed and is subject to market conditions and may change or program may be cancelled without prior notice. Available only for closed purchase agreements with financing through K. Hovnanian American Mortgage, LLC. KHAM, 3601 Quantum Boulevard, Boynton Beach, FL 33426. NMLS #3259 (www.nmlsconsumeraccess.org). Licensed by Delaware State Bank Commissioner to engage in business in this State. Lic. #7864 Expiration 12/31/2020. Licensed by Maryland Commissioner of Financial Regulation. Georgia Residential Mortgage Licensee #22272. Licensed by South Carolina Board of Financial Institutions. Licensed by Virginia State Corporation Commission Lic. #MC-2661. Licensed by West Virginia Division of Financial Institutions. Licensed by Ohio Division of Financial Institutions. Lic. RM.850228.000. Licensed by New Jersey Department of Banking and Insurance. Licensed by Florida Department of Financial Services. Licensed by Arizona Department of Financial Institutions. Lic. #906585. ©2020 K. Hovnanian Great Western Homes, LLC. K. Hovnanian Arizona Operations, LLC. ROC 188563. ©2020 K. Hovnanian Arizona New GC, LLC, an Arizona limited liability company. ROC 277023. Registered with the Texas Department of Savings and Mortgage Lending. Licensed by California Department of Business Oversight under the California Residential Mortgage Lending Act. Lic. #4130532. ©2020 K. Hovnanian California Operations, Inc. DRE license number 01183847. For licensing information, go to www.nmlsconsumeraccess.org. Subject to final negotiation of contract terms and is subject to all RESPA guidelines. Alternative loan options available. See a Sales Consultant for full details. Equal Housing Opportunity.
With savings of over $200 per month, that’s over $72,000 over the course of the loan, just thanks to lowered rates. We’re sure you could find a use for that extra cash, whether for your children’s college tuition, yearly vacations, or a new car.
Greater Purchasing Power
But another benefit of lower interest rates is greater purchasing power. Wishing you could increase your budget for your new home, or to afford a much-desired upgrade or option? Well, due to decreased rates, you can now purchase a more expensive home while paying the same monthly payments that you would have last year.^
^ Assumes a conforming 30 year fixed rate mortgage, principal and interest payment, with a 20% down payment. Interest rates are for illustrative purposes only. Historical data can be found at http://www.freddiemac.com/pmms/data.html. Not an offer to enter into an interest rate or discount point agreement. Buyer is subject to qualifications for specific loan terms, occupancy, down payment, credit and underwriting requirements, and/or investor program guidelines.
However you do the math, the message is simple: lowered interest rates mean you and your family can get a great deal when buying a new home.
To learn more about our new homes and communities, visit khov.com