Did you know …
I have heard a lot of discussion lately regarding buyers apprehension about making a decision to purchase a home today versus a year from now because of their belief that home values may decline another 10% or so. They are certainly aware that interest rates are excellent today and will rise in the future. I want to share with you the reality of these numbers so you can educate those buyers. This information could help them decide that buying now definitely makes sense.
Purchase Price: $522,000 vs Purchase Price: $470,000
80% loan: $417,000 80% loan: $376,000
Interest Rate: 4.75% Interest Rate: 5.75%
Principal, interest
And property taxes $2719.02 Payment $2683.81
Difference in Payment = $35.21
Purchase Price: $900,000 vs Purchase Price: $810,000
80% loan: $720,000 80% loan: $648,000
Interest Rate: 4.875% Interest Rate: 5.875%
Principal, Interest
And property taxes $4747.80 Payment $4676.91
Difference in Payment = $70.88
The small differential in these numbers was surprising to me. Maybe it will be to your buyers as well. They may actually realize that buying now and knowing what they are getting is more important than waiting for the unknown.
For more information please contact Marjo Shaffer with RPM Mortgage @ MShaffer@RPM-MTG.com or (925) 831-1855
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