A mountain home in the Connestee Falls golf community in North Carolina is currently on the market for $530,000. With a 20% down payment, monthly principle and interest on a 4.5% loan would be $2,148.41.
As part of its smorgasbord of ideas to get the U.S. economy moving again, or at least to stop tanking, the U.S. government has revealed a plan to tamp down mortgage interest rates by a point or more, to 4.5%. The almost unprecedented low rate will be available only to those with good credit ratings and who are purchasing a new home. The rates will not be available for refinancing existing mortgages, and a 20% minimum down payment will be required.
Given the plummet in home prices across the land, this is actually a scheme that could work. The combination of low interest rate and low home prices could drag some people from off the sidelines, especially those with cash or bullet-proof pension incomes.
I took a look at the mortgage factor tables to determine the monthly principal and interest payments on 30-year loans at a range of amounts. These do not include charges for taxes, club dues, homeowner association fees, utility costs and other charges, which will vary from town to town and community to community.
Loan amount Monthly Principle & Interest
200,000 1,013.40
300,000 1,520.10
400,000 2,026.80
500,000 2,533.50
600,000 3,040.20
1,000,000 5,067.00
If you want to calculate the payment for loan amounts not listed, simply multiply by a factor of 5.067 for every $1,000 borrowed.
