How can I buy with $30,000 more buying power?!? Hit the lottery??

Real Estate Agent with Keller Williams Realty Signature Partners




..........Interest rates are INSANELY low right now.  Down to 3.5% on an FHA loan.  Say interest rates climb back up to 5%.  The same house would cost $172 more per month in interest.  For every $10,000 more your clients borrow, their monthly payments increase by about $50/month.  At a rate of 3.5%, your clients can purchase $30,000 more than they would be able to at a rate of 5%.  Yikes, what if they climb back to 6%?  That's a $300 more per month payment for the same house.  SO right now they can buy $60,000 more of a house than they would be able to buy at 6%.  Do you think you might be able to get people motivated with this?  This doesn't even go into the cost of borrowing the money over 10, 15, even 30 years.  Staggering!...................


ALSO__Here is a new change to FHA

Erica Holstein
Real Estate Professional
Keller Williams Realty Signature Partners
Cell: 678-333-3745
Fax: 678-631-1701

Comments (2)

Tanja Cisliek
Future Home Realty - Seminole, FL

Erica, I think we all know these numbers, but you put it a very eloquent way that will really open people's eyes!

Mar 28, 2012 10:17 PM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

5% seems like a realistic rate at some point not to far off, so great reminder of the buying power you have now.

Mar 28, 2012 10:22 PM