The media has been informing us for some time that this doom and gloom in our real estate market will be here for at least another year, with further equity depreciation to come. But lets look at this not from a doom and gloom aspect, but rather an opportunity to really see what buying a home now does to comparing it to...waiting for the so-called bottom of the market.
Current interest rates on a conventional 30 year fixed loan is approx. 4.625% today, and 4.875 on an FHA 30 year. Experts are stating that mid to late 2009, we will see long term rates possibly in the mid 6% range.
Lets say that you are interested in buying a $400,000 home today with 20% down = $320,000 loan amount. At 4.625% you principal and interest payment would be $1,645.25.
Compare this to the "fence sitter" waiting for the bottom of the market. That same $400,000 home is now worth $360,000 (10% equity depreciation) 20% down = $288,000 loan amount. At 6.5% your principal and interest payment would be $1,820.36. That is a savings of approx. $175.00 per month, or $2,100.00 per year!
Purchase amount or interest rate? You decide!
Kevin Anderson
Countrywide Home Loans
695 Sierra Rose Dr.
Reno,NV 89511
Office 775-770-2810
Cell 775-560-5252
kevin_d_anderson@countrywide.com
By working with me I bring my experience of knowing the different areas and sub markets of Reno and Sparks and what area would suit your needs.
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