March 11, 2020 at 10:00am | Blair Schwisow
As Boise homebuyers arrive at their final choice, it’s impossible to ignore how greatly their decision
will influence their future. Five, ten, twenty—or more— years from now, the purchase will likely have
shaped a lot of what’s to come. Buying a home in Boise at this point in time may be seen to have been a
great move for the family. Or not. It’s a truism that puts most homebuyers in a thoughtful state of mind.

A prime facet of what will come to be seen as a successful purchase is whether it will later be seen
as a financially shrewd decision. On that score, today’s Boise buyers have little to worry about
—particularly if they will be financing with a typical 30-year home mortgage. Everyone knows that home
loan interest rates are low right now—but the real impact of how that fact will actually play out is
informative.

The average interest rate over the past half-century is 7.75%, according to Freddie Mac’s official
records in http://www.freddiemac.com/pmms/pmms30.html. By decade, that breaks down as—
1970s: 9.35% 1980s: 12.34% 1990s: 7.91% 2000s: 5.10% 2010s: 4.03%

For the average homebuyer during the past 50 years, that means a typical monthly payment for a
$300,000 mortgage has been (principal and interest only) $2,149. Contrast that today’s buyer—when
offered a 3.75% home loan, the monthly P&I will be only $1,389. Over the course of a 30-year loan,
that’s a difference that works out to a savings of more than $273,600!

Back in the ‘80s, when interest rates were ballooning, buyers could only shake their heads when
they heard stories about earlier generations who had financed their homes for what seemed like pennies.
Those earlier mortgagees might as well have been lottery winners. It’s no stretch to foresee that years
from now, future buyers facing historically average (or worse) rates may hear what today’s buyers are
being offered and think it’s some wild exaggeration.

Your own envy-worthy home purchase begins with finding the right Boise home—one you’ll enjoy
living in for years to come. Get started by giving me a call!

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