If you're looking for the ideal time to buy property in the Vancouver-Longview area of Washington, now may never be better. Housing values are on their way up and interest rates, while also rising, are still affordable. If you're curious about what your monthly payments might be, those depend on the type of mortgage you get and at what interest rate. Bankrate offers the following examples of a $200,000 loan with 20 percent down, no points and an excellent credit rating of 740 and above. Your actual payments will vary.
The major advantage of a fixed-rate mortgage is that your monthly payment remains the same, making it easier to budget over the entire term of the loan. Qualification is a bit more stringent because the interest rates can be higher than other types of loans.
- The most traditional 30-year loan currently ranges from 4.23 to 4.84 percent in Vancouver and Longview, yielding monthly payments from $982 to $1,043. The national average for the loan is 4.62 percent.
- The 15-year term boasts a lower cost over the life of the loan but higher monthly payments. It goes from 3.13 to 3.9 percent with payments of $1,393 to $1,467 per month . The national average is 3.66 percent.
If you're having trouble qualifying for the fixed-rate option, an adjustable-rate mortgage may be more doable. It has a starting “teaser”rate that is generally one percentage point less than the fixed variety. However, the monthly payment is fixed only for a specified term. After that, rates and payments adjust to match prevailing market conditions.
A 5/1 ARM, for example, means rates are fixed only for the first five years. The national average runs 3.61 percent. In Southwest Washington, interest ranges from 2.69 to 3.17 percent, which equals monthly payments of $803 to $926.
If these figures make you want to buy a home, please contact us first.