Buy a home today for maximum purchasing power

Those thinking of buying a home may want to get that done as soon as possible. Rising home prices along with rising interest rates are the two factors that are creating this urgency.According to most recently published statistics for the Metro Denver real estate market, residential mortgage rates have risen by approximately 1% on a 30 year fixed loan in the last 12 months and homes have appreciated in value by approximately 12%.

This means that a buyer purchasing a $300,000 home 12 months ago, would be paying $336,000 for the same home today and the interest rate at closing would be 1% higher.  The corresponding monthly payment will have increased by $146 per month, the buyer would have needed $7,200 extra in down payment and the additional amount of interest paid over the life of the loan is $73,535.

If the same trend continues, 12 months from now the same home will cost $376,320, the monthly payment will have increased $493 per month and the additional interest paid over the life of the loan will have increased to $166,342.

* Based on 12% appreciation rate** Total interest paid over 30 years

Colorado Home Realty (c)

Is now a good time to buy a home in light of the Government Shut down ??

I have been asked a lot recently about whether now is a good time to buy a home, especially in light of the Government Shut down.  Will rates go up?  Will my loan close??

Regarding rates, they have actually dropped.  A continuation of a shut down would cause a significant panic in the market and likely cause investors to run to ‘security’.  Mortgage Backed Securities (MBS's) have traditionally been a great source for security as they’re private bonds.  If Uncle Sam is out of commission, MBS’s could be an even better safe haven for investors.  The current, historically low rates are a function of the uncertainty and fear in the market place.  More fear is likely to produce lower rates, not higher. 

It isn’t possible to provide a guarantee of a rate until you are under contract.  HOWEVER, there is still much good news to consider along these lines.  Rates have been historically low; one of the lowest in 70 years.   Rates are still very low (mid to low 4’s right now) so the difference in payment on the same loan.  

This is a good reason to consider moving sooner rather than later..  Economists are projecting rates in the mid to high 5’s within 12 months. While that will mean strong recovery and better than average appreciation in home value, it will also make homes a bit less affordable.  

IF YOU ARE THINKING OF BUYING, SOONER IS BETTER THAN LATER.

Why you should be buying or refinancing TODAY !!!

What are the mortgage interest rates today??

Still a great time to Buy !!!

CONV 30 YEAR FIXED - 3.5% / 3.616% APR

CONV 15 YEAR FIXED - 2.875% / 3.081% APR

  

FHA/VA 30 YEAR FIXED - 3.250% / 3.431% APR

FHA/VA 15 YEAR FIXED - 2.750% / 3.075% APR

JUMBO 30 YEAR FIXED - 3.875% / 3.975% APR   

CONV 30 YEAR FIXED - 3.5% / 3.616% APR

Conventional loans are based on $300,000 purchase price with 20% down with a 740 credit score and 43% debt-to-income ratio. 

FHA/VA loans are based on $300,000 purchase price with 3.5% down with a 740 credit score and 43% debt-to-income ratio.
Jumbo loans are based on $600,000 purchase price with 20% down with a 740 credit score an

Courtesy of Colorado Home Realty

Kindest Regards

Julie Reddington | ABR®, REALTOR ®,  Broker Associate | Colorado Home Realty |

(Cell) 720-226-4168 | (Fax) 720.981.4788

Go to JulieReddingtonRealEstate.com or CLICK HERE to see what people say