Low mortgage rates are a big reason why affordability continues to improve. In 1991, a $1,700 mortgage payment allowed a borrower to take out a $200,000 mortgage. Today, it gets that homeowner a $350,000 loan, a 77% increase in borrowing power.
“You can build, you can buy, any house your heart desires. Zero down financing, I am the Banking Queen.”
I’m in the process of refinancing right now. It’s costing me $500 total to lower from a 4.5% to a 4.25% which will take me 3 months to recoup. Could have gone to a 3.99% but the cost was over $3k. I’ll just refi again for $500 if it drops lower!
You can probably get a better rate than that. You own a bank don’t you? 1st Nat’l Bank of Dom Rancho Chimichanga, Ca.
There’s some dumb government regulations against getting a loan from your own bank. So I have to go to a place next door to the Rancho Chimichanga bank!