Holiday Home Buying/Selling

With Thanksgiving in just one week, the holidays are about to be in full swing. Is this a good time to be buying or selling real estate??? The answer is YES!

During these busy times with family many potential sellers do not want to have the inconvenience of keeping their homes spic and span and having to decline showings because of the Christmas dinner party they are hosting. This is good because there are LESS homes that your home has to compete with than in the traditional "busy season" (spring and summer). There are also LESS buyers in the market, this is good because quality is better than quantity. The buyers that are taking time out from their holiday festivities to shop for homes are most likely ready, willing and able buyers.

If you are a buyer it's the perfect time because there are not as many buyers in the market, this is great because you aren't competiting in such a fierce market. The homes that come on the market and are in great condition, location and priced according to the market will go quickly. The bottom line is the seller's are motivated to sell, buyers are motivated to buy. Not to mention this season the interest rates are at historical lows, which is a great thing for everyone!

If you are or someone you know is looking to buy or sell in this holiday season, give me a call and I'll be happy to assist you!

Low, low, low RATES

Are at an all time LOW!! Now is the time to buy the house you've been dreaming of! Currently rates are 4% for a 30 year fixed conventional loan. The 20 year average rate is 6.93% To break it down simply, if you borrow $300,000 from the bank your montly payment including principal and interest only will be:
4% - $1432.25.
5% - $1610.46
6% - $1798.65
6 7/8 - $1970.79
If you buy now and lock in an interest rate of 4% you will save big time bucks over the life of the loan.
4% vs 5%- You save $178.21 each month, $2138.52 each year and $64,155 over the life of the loan!
4% vs 6%- You save $366.40 each month, $4396.80 each year and $131,904 over the life of the loan!
4% vs 6 7/8% (the average interest rate over the last 20 years)-
You save $538.54 each month, $6462.48 each year, and $193,874 over the life of the loan!
There has never been a better time to buy or refinance!

20 Years of Interest Rates

This chart shows the average interest rate on a 30 year fixed mortgage for each year of the past 20. As you can see there has never been a better time to get a loan! If you think that interest rates don't make that much of a difference.

Here is a great example of how much impact they have:

If you purchase a $250,000 your payment for principal and interest

at 6% = $1498.88 and at 4.5% $1266.71.

That is $232.17 per month and $83,581 over the life of the loan!!!!

If you're sitting on the fence

about buying or selling. Now is the time to get off of that fence and make a move. Interest rates have increased 1% since November 22. from 4.25% (a historic low) to 5.25%

what does this mean to you?

If you are looking to purchase a $200,000 home and owning it for 10 years that percentage point will cost you $14,463 WOW! That is a lot of money that could have spent on something other than interest to the mortgage company.

Moral of the story all indicators are pointing to continued increase in interest rates.

If you are thinking of buying, now is the time!

If you're thinking of selling and downsizing or moving up, now is the time!

Don't wait for the interest rates to go up another point. Call me if I can answer any questions that you may have. I'd be happy to assist you, your friends and family with all of your real estate needs.

Interest Rates

What is going on with interest rates? Below is a chart of mortgage rates from April 1st, 2010 through today. They are going up and quick!
Let us take a second to understand how rates fell to historic lows to begin with. Our country was minutes away from a financial disaster one hundred times more powerful then the Great Depression. The global economy was on the brink of a collapse and one we would have never recovered from.

I know times are still rough however, as a nation, we have distanced ourselves from this disaster and the economy seems poised for growth in 2011.

Greg McBride, chief economist for Bankrate.com, was quoted “I don’t think we’re going back to a 50 year low anytime soon without an economic collapse,” he said. “Rates will probably never revisit those levels”.

If you're thinking about buying or refinancing you should do it and do it quick! Due to the increase in the interest rate since November 22 on a $150k mortgage the monthly payment has increased by $150!

I'm here and happy to help you with your real estate needs! Referrals are wanted, needed and appreciated!