You can not time the bottom. Well, we wish we could. Resist the urge to hang in and wait. Why...
Mortgage Rates are Low - And may not be for next year. According to economists and industry executives, rates are expected to rise from current 6% to 6.50% by December and around 7% in mid 2009.
Here is a an example of what the bottom line can look like you if buy today vs next year with 5% drop in value.
Buy Today VS Buy in 1 Yr
Price $600,000 $570,000
Loan $480,000 $456,000
Rate 6.00% 7.00%
Payment $2,878 $3,034
You could realize a saving of $156.00 per month.
There are large amount of homes for sale. Inventory is high and you have choices now where in the past, you did not have the chance to even think and make decisions when a house came up for sale. Sellers are much more willing to negotiate now. Once the market turns, seller will be less open to giving incentives. SO MAKE THE MOVE!
*Info courtesy of Metro Arroyo Mortgage.
Comments (0)Subscribe to CommentsComment