Experienced buyer’s agents know that there is more to getting a great deal than just buying at the lowest price. Remember that no one can predict when the lowest price will occur and by the time you realize that it has happened, it is going up. Then you will be competing with everyone who was also waiting for the bottom. Reports from across the country are showing that various markets are beginning to recover and numbers of sales are increasing.
Mortgage rates play a large part in the overall price of your purchase. Remember, as prices go down, the interest rate usually goes up. A lower interest rate gives you more buying power. For instance, if you buy a house for $400,000 with a 10% deposit*, a mortgage of $360,000 would cost approximately $1950. per month. However, if you wait until mortgage rates go back up to 6.25% that payment becomes $2225. per month – an increase of about $250 per month. *Private mortgage insurance is usually about .01650% ($5940[partly refundable]) added to the mortgage amount would result in a premium of $147 until your LTV drops to 80% or more. The your payment would end and you would receive a refund on the balance of the PMI.
Look at the difference in what you can purchase. What are you buying? Are you buying a home that you can move right into? Or are you buying a home that will need either your manual labor or someone else’s (more expensive of course) for the next several years to bring it up to a livable condition? HOW MUCH REPAIR WILL THE HOUSE NEED? And can those additional dollars be mortgaged? Now we have other theories to evaluate and research to do.
These are all questions that you might not think to ask on your own. A buyer’s agent will help you think of the things that will be important to the purchase and occupancy of your home. For an exercise – on your own or responding to this article, pick a home from www.carolinetaylorproperties.com . Then, please outline the steps that you think it will take to purchase that home. I’ll give you the full process in another article in about 1 week.
Mortgage rates play a large part in the overall price of your purchase. Remember, as prices go down, the interest rate usually goes up. A lower interest rate gives you more buying power. For instance, if you buy a house for $400,000 with a 10% deposit*, a mortgage of $360,000 would cost approximately $1950. per month. However, if you wait until mortgage rates go back up to 6.25% that payment becomes $2225. per month – an increase of about $250 per month. *Private mortgage insurance is usually about .01650% ($5940[partly refundable]) added to the mortgage amount would result in a premium of $147 until your LTV drops to 80% or more. The your payment would end and you would receive a refund on the balance of the PMI.
Look at the difference in what you can purchase. What are you buying? Are you buying a home that you can move right into? Or are you buying a home that will need either your manual labor or someone else’s (more expensive of course) for the next several years to bring it up to a livable condition? HOW MUCH REPAIR WILL THE HOUSE NEED? And can those additional dollars be mortgaged? Now we have other theories to evaluate and research to do.
These are all questions that you might not think to ask on your own. A buyer’s agent will help you think of the things that will be important to the purchase and occupancy of your home. For an exercise – on your own or responding to this article, pick a home from www.carolinetaylorproperties.com . Then, please outline the steps that you think it will take to purchase that home. I’ll give you the full process in another article in about 1 week.
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