Folks here is some interesting information from Nathan Davis a mortgage broker here is SW Florida that is great news for those of you that are on the fence with buying due to increase prices…
As far as current mortgage rates are concerned, we had a little dip back down this week from the previous week’s increase, so we are now trending between 3.5% and 3.75% depending on whether you are looking at an FHA or Conventional Mortgage.
NOW, how can this information be useful to you? I have spoken to many clients that were considering buying last year, but did not. Now they are back in the “hunt” and have realized that not only is there less inventory, but prices have increased. This can cause them to delay even further, not certain if they should wait and see if prices soften again, will more inventory come out, what can I find at the prices I used to be at, etc.
The reality is, if they are taking a mortgage, their monthly cost even for a home that is $10,000 higher is as good right now than a home in 2011 priced $10,000 lower. How so?
*Let’s take a $140,000 home in 2011. The average 30 year mortgage in 2011 was 4.5%. A client putting 20% down would have a mortgage payment of $567 per month.
*Let’s assume that very same house is now $150,000 in today’s market. With rates as low as they are, let’s use 3.75%, even though the mortgaged amount is higher the payment is $555 per month.
So in 2011 it would cost you $567 a month, in 2012 it will cost you $555 a month. Sometimes you just have to “Show Them The Money”!
Great news for all of you that are looking to BUY NOW!!! Don’t miss your opportunity to take advantage of these low interest rates!!
wendy@wendysellsthecape.com
wendysellsthecape 
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