Are you reading about home interest rates and home prices and wondering if now is the time to buy a home? Are you an investor looking for low prices and hoping to take advantage of distress sales and low rates? Are you a first time homebuyer listening to the news and wondering if you should take the plunge into homeownership?
How do you make this decision? This entry will address why now may be the time to look seriously into buying based on the current interest rates and home prices. We'll call this the "Cost of Waiting".
The Cost of Waiting: Today home prices are low and interest rates are low. Do you expect the home prices to continue to decline? What about interest rates?
Let's take an example of home today priced at 450,000 with a rate of 4.875%. Assume the price drops 5% but at the same time rates increase 1% to 5.875%. Then worst case - prices actually do not drop but the interest rate increases.
What is the best decision? Numbers tell the story. Based on our assumptions above, - current prices and current interest rates - acting now could save the homebuyer 8400.00 over 5 years in monthly payments.
What could you do with thousands of dollars?
For an personalized analysis of The Cost of Waiting, contact: cfox@mcleanlending.com.
Predicting the future is impossible. Home prices may drop or may not. Interest rates have already started to creep up over the last two weeks. It is widely talked about on the radio and TV talking heads that the economy is showing signs of recovery. Recovery generally translates to increasing interest rates.
We know with certainty what today is.
For an analysis of the home price you may considering and what the savings of acting now could mean to you, contact: cfox@mcleanlending.com.
Subsequent entries will illustrate how real wealth can be realized by owning real estate: buying real estate right; the various lending programs available today: do you leverage as much as possible? Or do you invest with a large downpayment?
Comments(4)