No, I'm not being facetious or implying you're a dummy because you haven't bought a house yet.
In fact, just the opposite; waiting until now to buy has saved you thousands of dollars more that than measly 8 grand credit a lot of your friends got earlier this year. Here's how.
Let's take a look at the facts and mortgage market now compared to what they were then.
The $8,000 federal tax credit that got everyone excited earlier this year expired at the end of April, 2010. Buyers that had a contract dated prior to that were able to claim the credit up to the maximum amount of $8,000. and also got a loan with an interest rate around 5.5% or so.
If they bought the median priced house in the Knoxville, TN area, which would have been around $180,000, and got an FHA insured loan with the minimum 3.5% down payment they would have a monthly mortgage payment of $986.25 for their principal and interest. Taxes and insurance are added to that amount.
However, because you waited until now for whatever reason, interest rates have continued to drop. In the current mortgage market you can get an interest rate as low as 4.25% which would lower your monthly principal and interest payment to $854.50 or $131.75 LOWER than your friends who bought earlier this year and got the tax credit.
One huge benefit to you with the lower interest rate is that it's actual cash you're saving each month you can use for savings, bill paying, or whatever you choose.
And if you only own you house 5 years and 1 month and then decide to sell and move up, move down, or whatever, you have then saved $8.036.75 in actual cash payments which puts you Waay ahead of your friends and their $8,000 credit 5 years previously
Finally if you end up keeping your house and paying off your 30 year loan over the whole term you save a whopping $47,430 in actual monthly payments over your friends who bought earlier.
So if anyone tells you that you've missed the boat on that now expired tax credit,just whip out your calculator or this article and explain to them how you decided to wait until conditions were 'more perfect', as they are now, before pulling the trigger on your new home purchase. Then show them how much more they're paying compared to the sweet interest rates you're now able to take advantage of.
In the greater Knoxville, TN are visit www.KnoxvilleHomeCenter.com to see all the area homes for sale.
A little further north, Portsmouth, NH and Seacoast area buyers can visit www.NewHampshireMaineRealEstate.com. The state of New Hampshire also has a stunning 3.5% rate through their New Hampshire Housing program. These are the lowest rates in their 30 year history.
The only dumb question is the one you don't ask; call or email us.