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RAPID CITY MEDIAN HOUSE COST DOWN $50,000

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Lee Alley Real Estate - Rapid City, SD

RAPID CITY MEDIAN HOUSE COST DOWN $50,000 

News reports focus on home prices.  That’s the money the seller walks away with.  But the cost to the buyer is the total of payments over 30 or 15 years.  And for most of us, the acid test is how the monthly “payment” fits our budget.   Interest rates are the lowest in 36 years.  The mortgage-makers are having a price war.  The market is shouting Buy now!  Buy now!  Buy now!

Consider a typical Rapid City area median priced home, say $180,000 to $200,000.  With interest rates down to 4.8% from 5.8% not long ago, and down from 6, 8, or 10% in familiar memory, our monthly payment would be lower by roughly $100 or more, and we would pay up to $50,000 less over the life of the loan. 

Unfortunately, real estate is described as a long term family net-worth investment.  But when shopping for homes, and deciding whether to purchase, we mistakenly base it on current home
price rather than long term loan cost.    It’s that cost thing that most affects our long term family net-worth, more than the initial price

So if you’re deciding whether to seize the moment, you might be better off thinking of your long term family net-worth and real estate as an investment, and not so much just basing it on how much the seller will walk away with. 

 

VIEW MORE POSTS LIKE THIS AT MY WEB SITE:
www.BlackHillsMarketWatch.com

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