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!
No comments:
Post a Comment