A big thank you to Mark Timpane at Edina Realty Mortgage for putting this to print:

 

Thinking about refinancing into another conventional?  There might be another option for you.  Fast forward three to five years from now.  The real estate market correction will be behind us and you decide that now is the time to move onto a newer home.  But what if rates are at 6.5 % or more and your home is valued at or a little higher than you bought it.  Is there an option that can make you home more attractive?  If you refinanced today with an FHA loan at 5.0% for example, when you go to sell, your buyer would be able to assume your mortgage (only $500) and take advantage of today's lower rates.  The general rule is that for every 1% decline in interest rates a buyer gets 10% more purchasing power.  So the cost of assuming a $172,500 home has the same monthly payment as buying a $150,000 home at future interest rates.  So you have now positioned your home against homes with fewer amenities, and other $165,000 homes cannot compete on a costs basis.

 

Need to refinance-call me today

 

Mark Timpane

Edina Realty Mortgage

320.240.6157

www.markthemortgageguy.com


Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud

http://StCloudEdina.com - Get a free list of the bank owned properties on the St Cloud MLS

http://JasonTangen.EdinaRealty.com - Find out what you home might be worth if sold.

 
This post has been included in Minnesota Real Estate News

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Jason Tangen

Saint Cloud, MN

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Edina Realty

Cell Phone: (320) 492-2667

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The real estate information and opinions contained within this blog do not represent the opinions of Edina Realty, Berkshire Hathaway, Home Services of America or any of their collective affiliates.


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