Rates are at all time lows and are expected to stay that way for a while! This means payments can’t go much lower. Let’s put interest rates and mortgage costs in perspective.
Here is what MORTGAGE PAYMENTS on a $400,000 mortgage look like with a 30 year amortization:
@ 2.00% is $1477/month@ 1.75% is $1428/month@ 1.50% is $1380/month
Compare this with when rates were higher…
@ 5.00% is $2135/month@ 4.75% is $2076/month@ 4.50% is $2017/month
Your payment does not change by as much when interest rates get very low. If you are looking to buy a property, and you intend to own for 5 years or longer (and as I’ve stated many times for several reasons you should always plan to own for 7 years), then go for it. Feel good about buying. If this is within your budget, go for it. Buying is often more affordable in the long run and makes more sense than renting for the vast majority of us.
Your best interest is my only interest…