Falling Interest Rates And Coconuts
September 12th, 2008 categories: Coconut Grove Real Estate
This post is authored by our Guest Contributor, James Venney:
That house you want in Coconut Grove just got more affordable. The Fed’s action to take Fannie Mae and Freddie Mac into conservatorship has had a positive effect on interest rates. The implied government guarantee of the mortgage backed securities that Fannie and Freddie issue has attracted more investors and as a result conforming interest rates have drop .5% since Monday!
That .5% decrease equates to payment that is about $32 lower for every $100,000 of loan amount. $32 a month doesn’t sound like much but it has the same effect on your monthly payment as a 5% price reduction. So now is a great time to buy that Coconut Grove house you have always wanted.
Now regarding that old myth that more people are killed each year by falling coconuts than by shark attacks…here are the facts…..falling cocos.
