How cheap are mortgages in Dover Delaware?
“Mortgage rates hit an all time low in Delaware.”
Yeah, yeah… we’ve been seeing that headline in news reports, online articles and newsletters nationwide for most of 2012. But it doesn’t seem to be drawing much attention. I too find myself hearing it and thinking, “Yep, OK, good.”
I decided to go back and look at some of the previous mortgage rates over the years and figure out what does that mean in your monthly payments.
I mean, really… its fine and dandy for all these economists to chat up these rates, but what does that mean to you and me? How much money do we have to fork over each month?
In the early 1960’s rates were between 6.5% and 7.5%. For a loan amount of $150,000, 7.25% would be about $1023 a month
- The 70’s had some swings to it, but the early 70’s the rate was between 7.9 % and 10.5%. Using the same loan amount as above, your monthly payment at 10.25% would be $1344.
- In the early part of the 1980’s, rates were climbing up really high. In 1982, rates were between a whopping 17-18%. Same $150,000 loan amount, but a 17.25% mortgage rate gave you a monthly amount of $2168
- 1992 had rates floating between 9-10% so, same scenario, rate at 9.25%, your payment was $1235
- Ten years ago in 2002, rates floated down to 7-8%. That 8% put you at $1100 a month.
Here in 2012, rates are now between 3.5% and 4%. So, a 3.75% rate for that same $150,000 mortgage gives you a monthly payment of… $694!
I have to admit, I was surprised by the difference myself. Just between ten years ago and now, someone could be paying $300 a month less for the same loan. There’s a lot I could do with an extra couple of hundred or so each month.
And for the sake of disclosures, those figures are just principle and interest loan amounts for a 30year fixed mortgage and don’t include property taxes or mortgage insurance. And the rate you eventually get depends on your creditworthiness.
But a $150,000 loan in 1982 is just under $2200 a month and now it’s just under $700 a month!
I think years from now, at backyard BBQ’s and family functions, you’re going to hear people saying,
“You bought your place in ’12? Wow, was that a smart time to buy!”
What about the home prices? Here in Central Delaware, in Kent County around our state capital of Dover, we’re seeing a nice healthy, steadiness of home prices with a slight increase. The median prices stayed solid at $168,000 the last few months and were at $169,000 as a median for July. That’s some welcome stability.
So, you and I often hear TV commercials from retail stores… car dealerships… pool companies… whatever… blaring out, “IT’S A GREAT TIME TO BUY!!!”
But for real estate in Dover, Delaware, it really is.
Enjoy Your Day!
Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Kent County Association of REALTORS® or Keller Williams International.