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)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
1 comment:
Oh! This is awesome! Thanks for countering many
misunderstandings I have seen on this lately.
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