Wichita, KS Financial update for the Fall, 2012
By Wayne Short, broker/owner
Mortgage Interest rates continue at record low rates for the rest of 2012.
30 year fixed rate loans are at or below 3.5%
15 year fixed rate loans are at or below
Investors can get loans in the mid 4% rate with a 20% down payment.
What does this mean to you? Real estate is again becoming the “BEST” investment someone can make. It has the highest return of any safe place a person can put their excess cash.
Below is a couple examples of payments on residential properties:
A $200,000 loan with a 30 year fixed rate loan would have P&I payments of only $898.
A $200,000 loan with a 15 year fixed rate loan would have payments of $1,369.
In the 1st 15 years the extra payment of $371 would total $66,780 but would save $161,640 in the later 15 years compared to a 30 year loan.
A great investment for someone starting out to own real estate.
I just listed an all-brick, west Wichita, twin home with over 1,000 sq ft on the main floor and around 750 sq ft finished in the basement. The units are 2 br, 2 bath, one car garage with both sides costing $179,900.
A person could buy them both on a FHA loan, live in one side and rent the other. You can get owner/occupied rates if you live in one side and rent the other.
The owner will pay $3,000 of the buyers closing costs. Total down payment would be around $6,000 with total payments of less than $1235. The rented side brings in $895 each month making the buyers side cost only $340 a month. WHAT A DEAL.
You cannot even rent an efficiency apartment in the area for that kind of money let alone a 2 br, 2 bath all-brick home with a 1 car garage. A year or two later when the client decides to move up to a single family property they could rent the twin home for a profit of around $555 per month. That’s quite a return for only a $6,000 investment.
Interested in Buying or selling real estate in the Wichita, KS metro area? Call Wayne or Kirk Short at 316-554-2831 or 1-800-779-SOLD.
Email is shorty@realtor-shorty.com and visit one of my real estate web sites at www.move2ks.com or www.realtor-shorty.com. We are licensed with RE/MAX Realty Professionals with two offices in Wichita, KS.
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