As a follow up to my blog post yesterday 9/8/2010 regarding "What is the wait in Richmond Real Estate" - regarding "low interest rates", the Long & Foster Marketing Minute provides the following example:
"Let's talk about the "missed opportunity" on the tax incentives. Let's say first-time home buyer couple is looking at taking a 30-year loan on a $340,000 home, which was the average Long & Foster sale price in July. If they had purchased in early April, in time for the $8,000 credit, the interest rate probably would have been around 5.25 percent.
If that same couple bought today and locked in a rate around 4.5 percent, they would save more than $130 per month on the mortgage payment compared to the early-April purchase.
Even if they only live in the house for 10 years, they would save more than $16,000 in interest. These record-low interest rates mean buyers "match" the $8,000 they would have gotten in tax incentives if they live in the house just five years."
Consider spreading the word and sharing the secret that the media seems to conveniently overlook. There is good news in the real estate market, and as professionals it is our responsibility to send the message in order to combat the lingering negativity in our marketplace.
Facts & figures courtesy of Jeff Detwiler, president and COO of Long & Foster Real Estate