Where The Real Gold Is

By
Real Estate Agent with RE/MAX Prestige

What You don't Know Can (Will) Cost You!

The big deal in real estate is not in the (now expired) Tax Credit. The real gold is located in the historic low interest rates. And when combined with the fact that FHA mortgages are assumable you have the home buying opportunity of a life time. A few short years from now these are going to be known as the Good Old Days. Rates are not going to stay this low for long.

Let us take a look at two separate home purchases for $170,000, one purchased today and one, a year from now, both with an FHA mortgage. I am projecting a 1 % increase in mortgage rates. 

Smart

Purchase Price                    $170,000

3.5% Down Payment           $   5,950

MIP    2.25%                      $   3,691

Mortgage Amount               $167,741

Rate                                   4.875%

Term                                 30 years

Payment (P+I)                     $887.70

Notso

Purchase Price                     $170,000

3.5% Down Payment           $    5,950

MIP 2.25%                         $    3,691

Mortgage Amount               $ 167,741

Rate                                        6%

Term                                   30 years

Payment (P+I)                     $1,005.69 

Based on the above example Smart will save $117.99 per month or $1,415.88 per year. Over the life of a 30 year mortgage that equals $42,476.40!

But hold on now, there is more to this story!

If Smart is disciplined enough to put that $117.99 a month towards the principal each month he (she) would shave 80 months of payments off the mortgage. That is $ 887.70 a month times 80 months. A whopping $71,016.

Knowledge is power only if you act on it.

Win the day!

Mike Crum

Remax Prestige Realty

East Longmeadow, MA

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Successful Real Estate is a team effort. I look forward to working with you soon! 

Win the day!

Mike Crum Realtor, CIAS, LMC  

www.CrumTeam.com

RE/MAX Prestige

413-739-7104 home office

413-478-6540 cell

413-726-9311 voice & fax

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