Don’t Get Caught on the Real Estate Picket Fence?
January 24th, 2009 categories: Fairfield, Ohio, For Buyers
Buyers are hovering around homes in West Chester, Fairfield and greater Cincinnati Ohio- looking for the perfect spot to land.
The problem with hovering is mortgage rates may go up- stalling -then crashing your chance to land on the right property.
Today’s mortgage rates for qualified buyers (qualified buyers= decent credit scores) are hovering around 5%. So if you are looking for a home in West Chester (average sale price $244,000) and need a mortgage for $200,000, principal and interest is $1,073.64 per month. If the rate goes up to 6% the payment jumps to $1,199.10. The difference is approximately $126 a month or $1512 a year (or $45,360 over 30 years).
Hovering in a buyer’s market is only good as long as both interest rates and housing prices are going down.
Given the number of showings and contracts currently flying around the office- I think we are seeing the bottom on housing prices. If you want to wait and see how much lower interest rates will go- you may have a valid argument for circling. But what will happen if mortgage rates go down and housing prices stabilize and begin to increase? The net effect may be the same monthly payment on a smaller home.
Everybody wants to buy low and sell high- just make sure your real estate hovering doesn’t create such a large dust cloud that you miss your chance to land on the right piece of real estate at the right price.
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[...] Random Feed wrote an interesting post today onHere’s a quick excerptBuyers are hovering around homes in West Chester, Fairfield and greater Cincinnati Ohio- looking for the perfect spot to land. The problem with hovering is mortgage rates may go up- stalling -then crashing your chance to land on the right property. Today’s mortgage rates for qualified buyers (qualified buyers= decent credit scores) are hovering around 5%. So if you are looking for a home in West Chester (average sale price $244,000) and need a mortgage for $200,000, principal and interest [...]
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