With rising interest rates, how much will you pay for a $150,000 home this year?

2012 will go down in history as the year when interest rates were the lowest ever - 3.5%!!! And if you are still sitting on that fence waiting for the market to bottom out, well... it is time you jumped off.

 

Several things have been happening:

 

1. The number of homes on the market has dwindled. With demand exceeding supply, naturally home prices have gone up. (That's good news for sellers)

 

2. Mortgage interest rates have gone up substantially and in a very short period of time. 

 

How will this impact my buying power? I thought you'd never ask!

 

Let's say you were looking to buy a home for $150,000 and you had saved up enough money for a 20% down payment so that you did not have to have any PMI, then here's what you will be looking at:

 

Price of home: $150,000

Down payment: 20% or $30,000

Type of Mortgage: 30-year fixed

 

 

(Calculations from Realtor.com mortgage calculator)

 

So, in 2013, for the same priced home, you will pay $69.17 more per month! Or... you will have to buy a $133,000 home for the same monthly payment.

 

It has been predicted by experts that interest rates will dip down a little before they go up again and hit 5%!

 

Isn't it time you called me? I can always be reached on my cell phone at 803-348-9922 or email me at vsashikant@gmail.com.

 

Do check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

For... all Real Estate matters! 

 

5 Benefits to Home Ownership

An Englishman’s home is his castle, they say, but so is an American’s. We love our homes… to decorate, to create a warm loving environment for the family and to show off… er… entertain friends. And whether our thumbs are green or brown, whether our allergies are seasonal or year-long, we love to putter in the yard and struggle to grow organic tomatoes, a gigantic pumpkin, the perfect weed-free lawn. Yup! That’s pride of ownership?

Then there tax advantages – nothing to sneeze about. And finally, there is that pot of gold at the end of the rainbow – appreciation of real estate so that when we are ready to sell, we can make a hefty profit.

Wait... there's more. Put on your 3D glasses and look at the larger picture, the 70 mm 3D version. There are more substantial benefits for families, communities and in fact, the whole country.

1.      Higher Academic Achievement: It has been proven, say experts, that home owners are more involved in their children’s lives and that makes for better grades. Plus, home owners don’t move around like renters, so children have a more stable environment.

2.      More Cohesive Communities: Home owners take care of their homes and a wholesome interest in their neighborhoods. That nosy neighbor is really your big ally. Here are some stats:
- 28% are more likely to repair or improve their homes

            -        28% are more likely to vote
             -        11% are more likely to know who their Congressman is
             -        9% are more likely to know who is on their school board

3.      Better Connected Families: Home ownership builds stronger families.
- They volunteer at schools, coach athletic teams or become scout/troop leaders

            -        16% are more likely to attend PTA meetings, book clubs, etc.
            -        10% are more likely to attend church or other religious institutions
            -        Less likely to have alcohol or substance-abuse problems

4.      Improved Health & Safety:

           -        Home owners enjoyed better physical and emotional health.
           -        Since they have a financial stake in their homes, they are motivated to deter crime in    
their neighborhoods by forming community watch groups, leading to safe and stable communities.
          -        Children of home owners are 20% less likely to become teenage mothers.

5.      Stronger Economy: Experts opine that each home purchase generates as much as $60,000 of economic activity in the surrounding area – think of remodeling, landscaping, furniture and home appliances… it’s a long list.

Convinced? Now… call me (M 803-348-9922) to help you buy a home!

Source: NAR’s Field Guide to the Benefits of Home Ownership

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net.

For... all Real Estate matters!

Past and Future of Home Prices - Beautiful Graphic!

With thanks to Keeping Matters Current.

2013 Home Features Survey — Remodeling by new home owners

What are the first improvements home owners are likely to make after moving in, and how much they usually spend?
2013 Home Features Survey — Remodeling

Home Buying – the Money Part

At the outset, let me say that I am not a loan officer or a mortgage specialist. I am a Realtor, and as such, I come across buyers who are bewildered by the money part of buying a home.

 

Terms like closing costs, down payment and earnest money fly around them, and they are totally foxed. Not to be gender-biased, but 50% of buyers (you know who I am talking about) just nod knowledgably, I might add, when talk veers around to financing the home. Then, after that show of familiarity and proficiency, it’s too late to ask what these terms actually mean.

 

So… here in a nutshell are terms, meanings and where they all fit in.

 

Term	How much	Type	When	What is it
Earnest Money	$500 - $2,000 depending on the price of the home	Personal Check (unless property is a foreclosed one)	Paid while writing an offer. The check is deposited when the offer becomes a contract	It shows you are serious about buying the property
Down Payment	·        $0 for VA & USDA loans ·        3 – 3.5% of sale price for FHA loans ·        5 – 20% for conventional loans	Certified check	At closing	Your ‘skin’ in the purchase. Deducted from the sale price. The amount depends on the type of loan.
Closing Costs	Depends on type of loan. Maybe 2 – 5% of sales price.	Certified check	At closing	Costs of getting the loan, title search and attorney fees. Can also include VA and other fees.
Mortgage	The actual amount of the loan (sale price minus down payment)	Your bank sends certified funds to seller	At closing	The amount you owe on the house.
PITI	-	Personal check	Every month	Principal, interest, tax and insurance that you pay your mortgage company

 

#columbiahomes

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net