I can remember my parents paying around 18% on there mortgage back in the day. Truly a dismal prospect. The interest rate you pay, has a huge difference on the amount of your monthly payment for you home. In fact, not only does it affect how much you can afford, but it may make the difference whether you can purchase or not at all. Interest rates for now, continue to be at historic lows. The chart below, provided by the California Association of Realtors, is designed to help you understand how much even a small fluctuation in interest rates will affect your payment. So do yourself a favor, and don’t wait too long to buy.
Over the last few years since the economy tanked, there has been a lot of talk about job creation. Now consider the ‘Ripple Effect’ of how business brings more business. When you shop, that creates jobs, those business owners and employees can now go shopping, and the cycle continues. This occurrence happens on every level, and in addition, if you keep those dollars local it is good for your local community. You should especially consider shopping with mom & pop stores, because they are the backbone of our economy. To help illustrate this, I have included a chart to show how much the big ticket purchase of a home helps our economy.