Friday, August 12, 2011

Interest Rates, Tax Bills

While the local housing market continues to stall (although some areas of the country are showing increases of up to 18 percent since February), interest rates are at historic lows.  One of my trusted lenders, Randy Lipp of Starkey Mortgage, came running into the office on Wednesday to say that rates on 30-year, conventional, fixed mortgages had dropped as low as 3.875 percent for folks with exceptional credit.  Amazing! 
To add perspective to this number:  principal and interest on a 30-year fixed loan of $300,000 with a rate of 5.5 percent would be $1,703.37 per month.  With an interest rate of 3.875, that monthly number would drop to $1,410.71. 
Bottom line, if you have at least 20 percent equity in your home (and not everyone does since housing prices started to slump in mid-year 2007) and an interest rate of 5 percent or above, now is the time to consider refinancing.  The savings could be substantial.

Have You Received Your Tax Bill?

Have you received your tax bill yet?  Dunwoody councilman Robert Wittenstein reminded me that this year taxes are due a month later.  Click on DeKalb County to read the message from the tax commissioner.  Click on councilman John Heneghan's Blog to read more.

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