Buying a Bryan-College Station home rather than renting one just makes sense (dollars and cents that is). Just a few short years ago, this wasn't the case. With housing prices skyrocketing and interest rates higher, it was difficult for many people to purchase a Bryan-College Station home. So, renting a home seemed like a much more viable financial alternative. That's not the case anymore.
Interest rates remained at historically low levels throughout 2011. In fact, at the end of 2011, interest rates remained at or below 4% for nine weeks in a row. Only twice throughout the entire 2011 calendar year were they ever over 5%. The average 30 year Fixed Rate Mortgage ended 2011 at 3.95%, 0.91% less than at the end of 2010. The average 15 year Fixed Rate Mortgage was at 3.24% at the end of 2011, which was 0.96% less than at the same time in 2010. To put this simply, if you bought a Bryan-College Station home for $200,000 at the end of 2010, put $10,000 down and qualified for the best rate of 4.86%, your payment would have been $1337.10 per month. However, if you bought the same home at the end of 2011, put the same amount down and qualified for the best rate of 3.95%, your payment would have been $1234.95. That's a savings of over $1200 per year. That's a nice chunk of change to keep in your wallet, isn't it?
Home prices have also come down to much more affordable levels than the highs of just a few years ago. However, the prices have also begun to increase slightly over the last three to six months. This could indicate that Bryan-College Station real estate is beginning to level off a bit. If it continues on this path, Bryan-College Station home prices will increase over the course of 2012.
With the interest rates holding steady around 4%, home prices continuing to be affordable and inventory levels offering a nice variety of homes to choose from, renting is no longer the cheaper choice for housing. If you're interested in taking advantage of the low prices and interest rates on a Bryan-College Station home, contact me soon. I promise to do my best to find the perfect home for you today.
Stephanie Hansson, Living the Good Life in Bryan – College Station Real Estate
Originally posted on my Living the Good Life in Bryan-College Station Real Estate blog here: http://livinginbryancollegestation.com/buying-bryan-college-station-home-sense/.
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