We Really Don't Have Time
Congress did extend the first time homebuyer credit but time is running out. Yes you have until April to secure the right home, but beyond finding the right home, don’t let the low interest rates rise before you have time to act. Here is why a small increase in rates can affect your ability to buy that ‘right’ house. Let’s assume that you have your sights on a home for $200,000. You have 5% down or $10,000 saved up. You have calculated that your mortgage payment is $994.57 for a 4.78% interest rate. If the rates rise slightly to 5.5% your payment has just moved to $1,078.80. If your intention is to keep your payment at $994.57 per month your new purchase price is $185,000! The small increase has just cost you $15,000 in purchasing power which could mean the difference between getting the right house, or not buying at all. So before rates go up, and they will, NOW is the time to be out there finding your next dream home. For more information on how to maximize your purchase in a new market call me toll free at 1-888-HEY GLEN
Posted by:
Glenn Hanon
