Have you ever thought…
“I’d be crazy to buy now…What if prices drop?” Here’s a little Real Estate Arithmetic to help you overcome that fear…unless you are a big gambler!
If a buyer were to buy a $300,000 home today with 20% down with an interest rate of 4.5%, the payment for principle and interest would be $1216, but if you wait and if you get lucky enough for prices to drop by 6%, that same house would cost $282,000. However, what if interest rates increased at the same time and returned to their 10 year average of 6.25%, which is well below the 30 year average? The combination of reduced price and increased interest rate would increase your payment by $173 per month! Which bet are you willing to make: prices dropping or interest rates remaining at a record low?...by the way, interest rates haven’t been this low in 60 years!
Real Estate Arithmetic tells us that the cost of a home is more than the sales price: Interest rate + sales price = COST. Don’t Gamble! Buy now, the price is right!
Let us put our knowledge on your side.
No comments:
Post a Comment