Amber Nestor
The True Cost to Borrow - Simple Numbers to Compare: December 2021 Rates and November 2022 Rates
11-2-22 By Amber Nestor - Professional TN Broker - REALTORĀ® - Land & Luxury

Real data. Real results. - When working with me, you will use real data to obtain real results in every aspect of the analysis process: buying, selling, investing, marketing, advertising, etc.
Take a look at the data below to better understand out the supply and demand is affected in over 6 categories of buyers and sellers, by the changes in the baseline and average 30 year mortgage rates (and other similar types of lending) which are used in property purchasing.
Note: Data pulled from BankRate
Comparison of Cost to Borrow for Average 30 Year Mortgage Term ( Today November 2nd, 2022 )
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December 2021 Rate (if started today), $300,000 property, 30 Years, 3.64% rate
Monthly Payment $1,371, Total Interest Paid $193,448, Total Cost of Loan $493,448, Payoff Nov 2052
Status as of December 2022: Principal Paid $461, Interest Paid $910
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November 2022 Rate (if started today), $300,000 property, 30 Years, 7.22% rate
Monthly Payment $2,040, Total Interest Paid $434,554, Total Cost of Loan $734,554, Payoff Nov 2052
Status as of December 2022: Principal Paid $235, Total Interest Paid $1,805
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The cost to borrow is ENORMOUSLY different. This impacts everyone purchasing property who is
NOT paying 100% with cash.
I would argue this impacts most the following categoies (most impacted at the top of the list):
1. Buyers purchasing homes already built, and ready to move in.
2. Buyers purchasing property at upper market opinion prices.
3. Buyers purchasing land+home construction packages.
4. Buyers purchasing flip properties, investment properties, or 2nd homes.
5. Buyers purchasing land without a structure ready to live in, who plan to build in 5 years or sooner.
6. Buyers purchasing land without a structure ready to live in, who plan to build in later than 5 years,
or who plan to hold the property for a long span of time without changes.
Source 1:
November 2022
From the article:
https://time.com/nextadvisor/mortgages/daily-rates/mortgage-rates-today-november-1-2022/
Here are todayās average interest rates and what they mean for borrowers.
Today mortgage rates were varied, but we saw one benchmark rate sink. Average 30-year fixed mortgage rates declined, while average 15-year fixed mortgage rates grew. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) went up.
Take a look at todayās rates:
Todayās average 30-year fixed mortgage rate is 7.22%
Todayās 20-year fixed mortgage rate is 7.31%
15-year fixed mortgage rates are averaging 6.47%
10-year fixed mortgage rates are averaging 6.64%
The average 5/1 adjustable mortgage currently sits at 5.53%
Source 2:
December 2021
From the article:
https://money.com/todays-mortgage-rates-december-30-2021
Mortgage rates are trending higher today. The average rate on a 30-year fixed-rate mortgage
is up 0.015 percentage points from yesterday to 3.646%.
Nevertheless, rates remain very low historically speaking. Borrowers with strong credit can
still find attractive rates and low monthly payments on a new mortgage or when refinancing
an existing loan.
The latest rate on a 30-year fixed-rate mortgage is 3.646%.ā
The latest rate on a 15-year fixed-rate mortgage is 2.58%. ā
The latest rate on a 5/1 ARM is 3.334%. ā
The latest rate on a 7/1 ARM is 3.308%.ā
The latest rate on a 10/1 ARM is 3.334%. ā
Money's daily mortgage rates reflect what a borrower with a 20% down payment and a 700 credit score
ā roughly the national average score ā might pay if he or she applied for a home loan right now.
Each day's rates are based on the average rate 8,000 lenders offered to applicants the previous
business day. Freddie Mac's weekly rates will generally be lower, since they measure rates offered
to borrowers with higher credit scores.
As you can see, with the data above, interest rates and the true cost to borrow is having a strong impact on our ever-changing marketplace.
Text or call me today at (865)617-4783 to discuss your buying, selling, and investing goals for land, homes, and real estate in general.
Amber Nestor - Professional TN Broker
I pray God blesses you with health, wealth, and wisdom.