Monday, March 8, 2010

What if Mortgage Rates were to go UP?

If you were to hold off on that home because you thought home prices were going to drop, well consider this. If mortgage rates increase by 1 percent as predicted by economist in the next six months, what do you think that does to your buying power? A one percent increase on a $400,000 mortgage would reduce your borrowing power by $50,000. That is a drop of more than 10% of the loan amount in order to keep your mortgage payment the same. Instead of being able to afford the $400,000 loan amount, you would now only be able to afford $350,000. Today’s underwriting guidelines have tightened up even more than just a few months ago. Take away the $8,000 tax credit after April 30, this puts you at even a less advantage then someone buying today.

It is time to make some real decisions. This will be one time in our lives where it is the perfect time to purchase a home.

Helping the economy one home at a time….

Bill Nickerson

Vice President Mortgage Network, INC

179 Great Road, Acton MA 01720

978.264.4803 (o) 978.273.3227 (c)

Bill's Blog

Providing Mortgages Since 1991

Click Here to Apply Online

Commercial Residential Reverse FHA/VA

Posted via email from Bill's Mortgage News

1 comment:

Anonymous said...

Oh! This is awesome! Thanks for countering many
misunderstandings I have seen on this lately.