More Home For Less Money.
Low Interest Rates Give You Buying Power
If you’re considering building a custom home within in next year, you may want to move up your timeline. Interest rates are currently so low that you can build a much more extravagant home for less of a mortgage payment than you would expect. Currently interest rates are a historically low point, allowing you to afford to build at a lower price than ever before. Take advantage of the current low interest rates while you can.
Interest Rates & Affordability
Securing a low interest rate affects how much home you can afford. A lower rate can allow you to build a larger custom home than you would otherwise be able to afford by lowering your mortgage payment. If you’re available mortgage budget is under $2,100 you can afford a $400,000 home at an interest rate of 4.75%, or a $450,000 home at an interest rate of 3.75%. One point can make a significant difference in your purchasing power. Of course, other factors such as down payment amount and credit score also play into your total mortgage amount. But overall, the lower your interest rate, the more home you can build.
When looking at the interest rate trends of not just the past few years, but over the course of a few decades, it’s clear to see why now is a great time to build a custom home. In the 80’s interest rates averaged between 10% and over 16%. By the year 2000, interest rates had dropped to an average of 8.05%. The steady, but fluctuating, drop in interest rates we are experiencing makes this a prime time for you to build the custom home of your dreams. Before interest rates begin to rise, seize this opportunity. Remember, even the fluctuation of a 1 percentage point can make a huge difference in how much home you can afford. [ValuePenguin.com]
If you are interested in building a custom home, how is the time. If you take advantage of the current historically low interest rates you can build beyond your expected price range and truly own the home of your dreams, while paying the same monthly mortgage rate.
Curious about home much home you can afford to build? Contact Putnam Builders today for a free consultation.
Putnam Builders has been building custom homes on the Gulf Coast of Texas and surrounding areas since 1963. We would love the opportunity to discuss your custom home ideas in our design studio in Bacliff, TX or in the comfort of your own home. Please contact us at 281-339-0838 or request a free consultation.