I got thinking about our discussion that talked about Mortgages. Remember we mentioned that mortgage rates were at 3.71% on Tuesday, today they are 3.750% for a fixed thirty-year mortgage.
Rather than have you either operating in the dark or constantly checking with a Mortgage Calculator to find out what your monthly payment is going to be, I thought it might help if you knew a much easier way for you to do all this in your head.
If when you are thinking about buying a house it is absolutely critical that you stay within your financial reach. There is little advantage of chasing after something that does not fit in your reach.
Oh sure, it is a lot of fun to look at expensive homes. I checked out a beautiful $600,000 lake front vacation home but honestly that is never going to happen so why bother?
When you are shopping if you put in your mind that each single $1,000 of loan will cost you roughly $6.00 each month that will make it a lot easier for you to know exactly what is going on.
If you are looking at a mortgage of $100,000 that would cost you $600 each month and a $200,000 mortgage will cost you $1,200 every month. It is an easy math thing you can do in your head. Each one-thousand dollars will cost you six bucks each month.
Isn’t that easier than running around with a calculator? My numbers aren’t exactly correct but it will give you a great idea that is so very close to exact. This morning I was talking with Vermont Modular clients and we did the $6 a month thing on a $200,000 plus mortgage and I was off by about $4 on the total payment. Not too shabby.
What do you think? Give us a call at (802) 985-5855
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