First Time Homebuyers or Moving Up

Real Estate Agent with Coldwell Banker Infiniti Group

Making a home purchase is a major decision and should be weigh carefully and is not for everyone.  My humble opinion is if you have a steady job, good credit and the down payment, then you are being offered a gift of a life time.  With the low interest rate hovering from 5-5 1/2%  and prices at or close to the bottom it is a win win situation whether you are buying your first home or looking to move your family to a bigger home.

If you are one of the many people who are on the fence because you fear the prices might still go down, consider this:

If you buy a home worth $600,000 with a $480,000 30-year loan at 5% interest rate, your monthly principal and interest would be $2,576.74.  If rates rise to 6.50% your payment increases to $3,033.93.

Now if there is a 5% decrease in price and your $600,000 home falls to $570,000 in one year but you wait to buy and the interest rate rises to 6.50% your payment will be $2,882.23 at 20% down payment.  Now you'll spend more money per month plus at a higher rate you pay more interest over the life of the loan.  How long you plan to stay in the home must also be taken into consideration.

One thing is certain, the FED cannot keep the interest rate this low forever.  (As the economy becomes more stable interest WILL rise to hedge inflation.) 

The Oscar Bautista Group specializes in helping families make good decisions.  If you are considering purchasing a home and would like a FREE consultation, we'd love to sit down with you and help you weigh your options and direct you to a qualified, caring mortgage professional that will help you with the numbers.  You can contact us at 415-370-7703 or e-mail .


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