“Interest Rate’s Relationship to Affordability of Buying a Home”
This post has such important information in it. Interest rates will be rising. Read this post. A 1% increase in interest rates can reduce your buying power by $50,000.00. That's a major impact in the quality, size, etc of the home that you want to purchase. With interest rates due to rise, do not waste time in your home buying quest.
“Interest Rate’s Relationship to Affordability of Buying a Home”
I speak to Realtors all the time about prospective buyers that just won’t get off the fence. They tell me clients may look from time to time and just won’t pull the trigger and buy and it is not because they can’t afford to buy, but they seem to be looking for what isn’t available.
There seems to be very little discussion about interest rates. A one percent increase in interest rates could mean $50,000 in buying powers, but apparently very few talk about the possible impact on buying power.
All markets are different, but in the states I do business I see anywhere from $100 per square foot to $2200 per square foot. I suppose that to some $50,000 in buying power doesn’t matter, but for most people it would make a big difference.
The cost of rent in most areas is going up faster than a mortgage payment. Wouldn’t it make more sense for someone to take advantage of a tax write off instead of continuing to collect rent slips?Image coutesy of stusrtmiles/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.
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