The Low-Down on Low Rates

Before I get to my point, let me pass some basic numbers by you:

The monthly payment for a $200,000 30-year mortgage loan at 4.5% interest is $1,013.37. At 6% it’s $1,199.10. That’s a $185.73 per-month payment difference for buying now versus a few months ago.

Multiply that difference over 7 years of ownership, and your buyer will save a whopping total of $15,601.32!

The savings in this example is almost twice the amount of the expired government stimulus bonus. But here’s a larger point to consider: there’s a disappointing lack of media buzz about this opportunity. That’s too bad because the current record-low interest rates could save your fast-acting buyers a lot of money, or allow them to buy a more expensive home for the same monthly payment.

I met with a group of real estate agents recently to discuss ways they could communicate this opportunity to prospective buyers. Here are some of the easy-to-do ideas they came up with:

• Post a blurb on your Facebook page.
• If you use Twitter, tweet it.
• Email your contacts, asking if they know anyone who could benefit from record-low interest rates.
• Print a comparison sheet for open house visitors.
• Write a news release for your local media. Make it a story by quoting a buyer who is enthusiastic about the money they are saving. 
• Bring it up whenever you chat with friends (i.e., “By the way, did you know…”).

Anything you do is better than waiting for this story to catch fire in the media. And when you help a receptive buyer save a basket full of money, you’ll be their hero forever.