Monday, March 24, 2014

Buy Now Not Later

 If you are considering... it might make a lot more sense for you to buy sooner than later!  Ask me how to get started!

Money Magazine: Buy Now Not Later

 We have often suggested that potential home buyers consider rising
interest rates when thinking about the true cost of a home. Remember,
cost is not determined by price alone but by price and mortgage rate.
The longer a buyer waits, the higher the mortgage payment will be if
rates continue to increase (as is projected by Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association).

Money Magazine, in its latest issue, agreed with our analysis
as they also warned their readership of the same ramification if they
waited to buy a home.

Here is what they said:

"BE MINDFUL OF RATES. The average interest rate on a
30-year fixed loan is predicted to climb from the current 4.4% to 5.3%
by the 2015 spring buying season, according to Freddie Mac. For a
$250,000 loan, that means that a borrower who waits would pay $136 more
per month and an additional $49,090 in interest over the life of the
loan. Will you need a big loan? Better to act soon before rates tick

And the monthly increase Money mentioned did not take into
consideration that prices are also projected to increase over the next
year. Here is what the additional cost would be if prices rise by the
4.5% projected by the latest Home Price Expectation Survey and interest rates go to 5.3%.

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