Many don’t grasp the importance behind dropping interest rates. This has a HUGE impact on monthly payments. And many don’t realize down the roan LOAN ASSUMPTION will be in the buyers favor! Here’s a brief breakdown of everything INTEREST!
What is a PITI payments?
Principle, Interest, Taxes, and Insurance. This is your FULL monthly housing payment.
What are the numbers above?
The numbers above are the Principle and Interest total. Added into those numbers will be your monthly insurance and property tax. Those differ depending on area and who you choose to provide your home owners insurance. Once a property is found, I can better guide you on your full payment!
What is a ‘ 30 year fixed rate VA loan’?
A 30 year fixed rate means that you, the home buyer will be repaying your home loan over 30 years with an interest rate that is locked, and will never change during the course of the 30 years.
A VA loan is the type of loan you are securing. A military member can use the VA entitlement for 2 homes at any given time, and later restore the entitlement to buy more homes later down the road.
How do Interest rates impact my payment?
In 2009 the interest rate was 5.5%, 2 years later interest rates are around 3.75% for a 30 year fixed rate.
In 2009, the Principle and Interest payment would be around $738 a month. Today, that number is around $602 a month!