You might be as sick of hearing about "All time lowest interest rates" as we are sicking of saying it, but nonetheless it is truly mind-blowing how much house you can buy for every dollar of monthly payment right now. Last year when we were saying "Low interest rates" we meant 4.5%, but today we mean 3.25%. So you might be asking what that equates to in regards to purchasing power, so we ran the numbers for you.
If you were going to buy a $250,000 home one year ago, your payment on an FHA loan with a 3.5% down payment your monthly PITI payment would have been $1,800.77. If you were going to buy that same home today with the exact same down payment, then the PITI payment would be $1,628.32. That is an overall difference of $172.45 per month.
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