The thing that many people don't seem to really understand is that for every little bit the interest rate ticks up, and homes appreciate in value buyers are losing the amount of house they can purchase at a given amount.
A lot of people say they want to wait and save for more money down. But if homes appreciate even 4% in a year you would have to save that much more than you thought you would to buy the same house.
For example:
You want to buy a $400,000 house and you don't want to pay mortgage insurance. So, you want to get a conventional mortgage with 20% down. Today that would be $80,000,
but next year at 6% appreciaton that house will be worth $424,000. You've been saving for a down payment of $80,000- now you need $84,8400.00. And that doesn't even take into account the loss of buying power when the interest rate goes up- and it is going up.
So, when is the time to buy?
NOW! There are so many programs out there to help you get into a home with little or no down payment. Call me- I can help!
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