Do you think that since you missed out on the tax credit you should just wait? Sit on the fence. See what’s going to happen. Maybe just sulk a little? It always burns to know you missed out on something someone else received but I think a little perspective is in order. Let’s do the math.
Four years ago, on a $250,000 home with 20% down and an interest rate of 6.6%, your monthly principal and interest payment would have been $1277.32.
Today with that same $250,000 home with 20% down and an interest rate of 4.37% (wow!), your monthly principal and interest payment would be $997.98.
That’s a savings of $279.34 a month.
Even if we just look at the drop in rates since the tax credit expires, things are looking good. On April 30, 2010 the average mortgage interest rate was 5.06%, using all the same figures your monthly principal and interest would be $1,080.99.
That’s a savings of $83.01 today. If you had purchased during the tax credit you would have received $8000 from Uncle Sam. If you save that, it would come to approximately $22 a month for 30 years. So even with all the hoopla surround the tax credit you are SAVING $61 a month RIGHT NOW.
Not what you expected, is it? So before you decide to wait and see what happen just look at the numbers. Interest rates are at historic lows- take advantage of it!