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Friday, September 17, 2010

If I Could Turn Back Time.. And You Can!


Fall is coming! It's almost here! As the weather turns cooler, folks usually start thinking about nesting. The weather isn't the only thing cooling... mortgage rates have cooled to an all time low and the housing market is still cool.. cold if you talk to some people. So now is the time for smart consumers to take advantage of an amazing opportunity!!


It's almost like going to your favorite department store and everything is on sale. The clearance section is huge and you look great in that new outfit, and it's discounted to the bone!


When Cher sang "If I could turn back time" she probably wasn't thinking about housing.. but the clock has turned back, baby! Mortgage rates rival rates from the 1950s and home prices have reset to prices from the 1990s. So you can take advantage of the good ol days and still have the good hair styles of today. "30 year rates are sitting in the low 4 percent range with the only possible direction being upward" according to Joanne Rotella of Brand Mortgage. Example of SAVINGS: If your current mortgage is at 6.25% on a $300,000 mortgage you could refinance and save approximately $370 per month! You can even get no closing costs options so you don't have to come out of pocket with any money and still save a bundle.


If you're even thinking about purchasing... NOW IS THE TIME! We are all going to look back at this moment in time and think "why didn't I buy when the market was down???" and want to kick ourselves. Inventory selection is good, and it is an extreme buyers market. Prices are lower than they've been in years COMBINED with the lowest interest rates.


A conservative example of savings that exists right now: Price of a home in 2008= $400,000. The loan amount (10% downpayment) would be $360,000. Interest rate= 6.25%. Your principal and interest payment would be $2216.58. Buy that same house today for $350,000. Loan amount with 10% down (that's right- you can still get financing of even 95% if you have good credit) is $310,000. Today's interest rate is 4.25%. Principal and interest payment= $1525.01. You would save $82,987 in 10 years. Wow.


Most likely in 10 years, the housing market will have recovered. Although don't expect home prices to soar like they did in the last 10-15 years, but steady regular growth is expected. And don't forget the tax advantage that homeowners have. Home ownership is still one of the best long term investments. Besides, you can't decorate your mutual funds.


If you are thinking of buying a home (or selling) contact me! If you would like to know what you would qualify for and to get specific examples of what you would save based on your price range in today's market, or if you want to know more about refinancing, call my friend Joanne Rotella at Branch Mortgage 404-290-4800.


Oh, by the way, the photo in this article are my parents. How cute are they? Now, if I could just turn back time to get my 1995 face back.




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