Traditionally, spring and summer are very hot times to purchase or sell a home; however there seems no better time to purchase a home than right now when interest rates are low and your buying power is great.
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With interest rates as low as they have been in many years, homeowners see the opportunity to purchase “up” with little change to their mortgage payments relative to the upgrade to their home. Buyers see that homeownership is more affordable than renting – especially in the greater Burlington area where apartment vacancy rates are among the lowest in the country.
Heather Myott, our Coldwell Banker Mortgage Advisor, provides some examples of your improved purchasing power based upon interest rates today. Assumes a down payment of 3.5% down payment and 30 year fixed rate.
| Monthly Payment |
Interest Rate |
Purchase Price |
| $1,544.15 |
4.750% |
$300,000 |
| $1,544.15 |
5.750% |
$268,000 |
 To maintain a monthly payment of $1,544.15 in an economy with an interest rate only 1 percentage point higher, you could only afford a home worth $268,000.
That is a decrease in purchasing power of $32,000 or 11% less in your home!
Heather Myott
Coldwell Banker Mortgage
Email Heather
|
Waiting to buy or sell does not always make sense. Home values may remain stable, with a possible single digit price appreciation over the next 12-18 months, however, when property tax rates and interest rates increase (both projected through 2012), the pool of buyers who can afford that price will diminish. Contact
Heather Myott of Coldwell Banker Mortgage with questions about your purchasing power or use our
mortgage calculator.
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