LUFKIN, TX (KTRE) -
Interest rates for
homes in Texas have stayed incredibly low since last year, which is great news
for East Texans looking to buy a home.
Rates are lower than
4 percent. Mortgage departments and real estate agents are hopeful these rates will
help persuade potential home buyers in time for spring, the busiest time of
year for buying a home.
Interest rates for
homes in East Texas have continued to drop this month. They have dropped so low
that Michael Bryan, a realtor for Century 21, said right now is the time to
act.
"Interest rates are
low right now - below four percent, and I don't know how much lower they can
go," Bryan said. "So, it's an excellent time to buy a house right now."
Take a look at the
current home loan rates in Texas. Right now, with a credit score above 700 and
a home selling for about $150,000, you could qualify for a 30 year mortgage
interest rate of about 3.5 percent. And for the same credit score and loan
amount, the rate for a 15 year mortgage would currently be under 3 percent.
This may be a lower
rate, but Bryan said his customers are better off with a 30-year mortgage.
"You can get a little
bit lower rate with a shorter term; the fifteen year note," Bryan said. "But in
general, I recommend the thirty year note so that you don't have as much
obligation. It doesn't take as much of your credit available to get your
note."
Lower rates mean
buyers could be spending a little less than a $1,000 a month on their mortgage.
"Actually today you
can spend less money on a mortgage than what rent costs you," Bryan said. "Rental
is at a premium here in Lufkin and so you can spend less money and actually own
the home."
Bryan said there are
some pre-owning steps to take before buying your first home.
"Buying their
first house, they'd want to go ahead and get prequalified," Bryan said. "They
should go ahead and go visit with their lender and get prequalified so they'll
know exactly what they're qualified for."
Getting pre-qualified
is the ideal step to put any home buyer in a better bargaining position when
it's time to make an offer on that beautiful house you've had your eye on.
Lufkin realtors are
hopeful these rates will continue to stay below four percent throughout the
year. Although there's a possibility rates could change everyday depending on
the market.
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