Don't Let the Media Distract You From Today's Buying Opportunity

Buyer, Mortgages, Real Estate News

What the Negative Real Estate News in the Media has Distracted You from...

Interest Rates and Home Prices Are Down

Dan Caplinger, Motley Fool Contributor, reports that if you overlook the turmoil in the mortgage markets and have just looked at the mortgage rates since last summer you would of seen the rates on 30 year mortgage fall as much as .8% until the recent increases. Combined with the actual decrease in prices around the country this has been quite a savings for buyers!

Your Mortgage Payment Just Got Lower

Dan shows that if you assume a 4% home price drop and a 5/8% interest rate drop that $250,000 house that was costing you $1248/mo with a 6.375% interest rate and 80% loan to value (LTV) will now only cost you $1120/mo with a 5.75% interest rate on the $240,000 depreciated home value with the same LTV (loan to value). Thus you get a $128 per month savings. Over a 10 year period this adds up to $15,360 savings.

Now Is the Time to Buy

While interest rates may have gone up recently there are still at historical lows. So if you find a house you like in Jacksonville or Ponte Vedra Beach Florida then you should buy it! If we have learned anything from the stock market is that you can’t time it. So if you see a home that works for you, then grab it.

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