 |
|
|
|
|
|
 |
|
|
|
|
|
|
Service Makes The Difference!
Save Money By Buying Now Rather Than After A Price Drop!While national statistics don't paint the whole picture, generally, they can help you understand where the market might be headed. Fannie Mae recently projected that home prices will continue to fall during the next three months and begin stabilizing toward the end of the year. Some economists are not as optimistic and don't expect the housing market to recover until 2014. Does that mean you should wait until 2012 or 2014 to start looking for a home? Not really - unless you have personal reasons to wait, says Ed Conarchy, a mortgage planner and investment adviser in Vernon Hills, IL. "The chances (mortgage rates) could go up a lot is much greater than the chances of them going down a little bit," Conarchy says. The rate on 30-year fixed mortgages reached a record low of 4.42 percent in November 2010, according to Bankrate's weekly mortgage rate survey. The record high was about 18 percent in 1981. The Mortgage Bankers Association forecasts mortgage rates will be close to 6 percent by the end of 2012. If rates rise by the time you jump into the market, even if homes prices take another dip, you may end up paying more for the house, Conarchy says. Let's assume you are thinking of borrowing $150,000 to buy a house and you are able to get a 30 year fixed rate mortgage at 4.75 percent in the current market. This translates into monthly mortgage payments of $782. If you wait a year and prices drop by about 10%, you may be able to buy that house with a $135,000 loan. But if interest rates rise to 6 percent, you would end up paying $809 per month. "So when it comes to mortgage rates, there has never been a better time to buy," Conarchy says. Reprinted from the August 5, 2011 Daily Journal Taking this one step further, that $150,000 loan with a 4.75 percent 30 year fixed rate loan would give you a $782 payment. Over the total 30 years, the total interest payments and the principal added together would total $281, 689.56. The $135,000 loan with a 6 percent 30 year fixed rate loan would give you a $809 payment. Over the total 30 years, the total interest payments and the principal added together would total $291,381.56. Meaning the lower $135,000 loan would cost nearly $10,000 more than the $150,000 loan!
main page featured property listings search for homes open houses mortgage center school info free cma request free reports pre-qualify now! contact Berry McCracken
GRI, Broker Phone
E-Mail Us
(815) 954-7761 Fax (815) 933-9326 Rosenboom Realty
685 Main St. N.W.
Bourbonnais, IL 60914
|
|
