In 1981 the average 30yr fixed interest rate was 16.63%. If you bought a $85k home your P&I payment (which would not include taxes or insurance) would have been $1,186 a month. Today a $85k P&I payment would be $443 a month. That home is 267% more affordable today then 29 years ago! Let's say you bought your home in 2006 for $125k. The average 30yr fixed interest rate that year was 6.5% making your P&I payment $790 a month. You can move up to a $151,443 house today without changing your P&I payment of $790 a month. You combine that with the possibility of getting the $6500 or $8000 credit if you qualify and it makes things very interesting. Below is a list of products and services I offer, current Cedar Rapids real estate interest rates and a mortgage calculator.
- The city of Cedar Rapids has a new up to $6,000 First Time Home Buyers Grant program with limited funds. Call me at 573.9668 for more details!
- 10% of the purchase price up to $8,000 tax credit to first time home buyers from the federal goverment. Your house has to be closed by July 1st, 2010 with a purchase contract accepted by April 30th, 2010!
- Just announced! $6,500 Move up tax credit from the federal government for anyone purchasing another home by April 30th, 2010 with it closed by July 1st, 2010. You must have owned and lived in a home as your primary residence for 5 of the last 8 years.
- Want to build a home, but your price range is lower? Ask me how I can build you a home for between $83,000 and $105,000 with the help of the City of Cedar Rapids. In 2010 it looks like we will have some similar grant programs for Cedar Rapids like we did last year for New Construction. What I have heard so far is that the grant is going to be 25% this year with two price ranges. One up to 150k and the other up to 180k with similar floor plans as last year. I do have some lot location details as well. The program was suppose to open up in April but has now been pushed back to sometime in May. Give me a call at: 319.573.9668 with questions or interest. More details to come...
- Should I Refinance? Depends on the situation. Let’s say you bought your home five years ago for $125,000 with a rate of 6.5%. (I’m going to use averages here.) Your loan balance today is probably around $120,200. A typical refinance is going to run around $3000, and let’s say you get a rate of 5%. Most people (if allowed) will roll the costs onto the loan so your new loan amount would be $123,200 at a new 30yr term. To look at the savings correctly you will need to look at it on a 25yr loan/amortization since you have already been paying for the house for the last five years. So your old P&I payment was $790. Your new one is $720 on a 25yr amortization making the savings $70 per month. However, you added $3000 in debt which means it will take you a little over three and a half years to get back to the same equity position you are in now if you didn’t refinance. So if you are looking to move in the near future it would not be smart to refinance in my opinion, but if you plan on staying then it might be a good idea. Now you can take these numbers and look at them in different ways. If you have paid a larger portion of your loan off either by living there longer like 10-12yrs or from making extra payments then it could be a good idea. Using the same numbers but changing the loan balance to $95,000 makes your new payment at $555 with a savings of $234 making it just over a year to pay of the $3000 cost. This is also one way you pay off your house faster. If you did change your payment to $555 and kept making the $790 payment then you would be paying an extra $234 per month in principal which would drastically reduce your loan term. This is also why owning investment properties is such a good idea. If you’re a fan of Collins Community Credit Union like I am and have one of there programs that allows for a modification which is far less in cost then a typical refinance. Then it is almost always a good idea. Give me a call or an email if you have questions.
- Provide information on Conventional, Non Prime, FHA, VA ($5,000 Grant for veterans from the State of Iowa), 203K Rehab, ARM, Interest Only, Contract, First Time Home Buyer Programs, Grant Programs, 100% Financing, New Construction, Investment, and Cash Deal loans | mortgage.
- Fixed or variable rate loans | mortgages.
- Poor Credit | Good Credit.
- Bankruptcy or Foreclosure.
- Hard to Prove Income.
- Credit Repair.
- Provide you with an Estimate of Proceeds for a seller or an Estimate of Cost for a buyer.
- Calculate possible tax advantages that could reduce your monthly payment by achieving more take home pay each month.
- In-depth financial | mortgage qualification to see what your price range and monthly payment would be before even going to see a lender - so you know where you stand beforehand.
- Help you find appropriate financing | mortgage, if necessary, and what you will need to acquire financing | mortgage.
- Provide you with your credit score and information.
| CONVENTIONAL LOANS |
|
GOVERNMENT LOANS |
|
| 15 Year Fixed |
4.250% |
FHA 30 Year Fixed |
4.750% |
| 30 Year Fixed |
4.750% |
VA 30 Year Fixed |
4.750% |
| IFA "First Home Buyer" |
5.000% |
|
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| Construction Loan |
6.000% |
|
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| 5/5 Adjustable Rate |
5.000% |
|
|
| 7/1 Adjustable Rate |
4.500% |
|
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| 10/1 Adjustable Rate |
4.875% |
|
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Interest rates subject to change without notice. Interest rates quoted with 1% Origination Fee. Interest rates based on 30 day lock.
- Click here to view a 30 year history of mortgage | interest rates. (PDF)
Mortgage Calculator
Use this simple mortgage calculator to give yourself an idea of how much your monthly mortgage payment will be.