Well written explanation of how interest rates affect home mortgages

Shelia A. Ferrentino, GREEN SFR's Blog
By Shelia A. Ferrentino, GREEN SFR | Agent in 14150



The Cost of Wating

Should I Buy I Buy NOW or WAIT ... Do You Know the cost of Waiting?

If rates start to rise, buyers may find them priced out of the neighborhoods they want to buy in. Below is an example of what a rising rate environment would mean to buyers who are on the fence. 5 years ago, a 30 year fixed rate averaged around 6% and ten years ago, they averaged under 8%.

Let's Look at a Proposed Purchas Price of $100,000 with a 3.5% Down Payment, base loan $96,500

Interest Rate 4.5% 5.0% 5.5% 6.0%

Monthly Pmt $489 $518 $548 $578
(P/I Only)

Monthly $29 $59 $89
Increase

Increased Cost $10,440 $21,240 $32,040
Over Term of Loan

To help you better understand what this means to your borrowing power, the same payment of $500 per month loses almost $16,000 in financing ability with a rate increase of just 1.5%

Rate 4.5% 5.0% 5.5% 6.0%
Loan Amount $102,500 $96,500 $91,500 $86,500

Ohio Association of REALTORS

Here's a good article explaining the ramifications of some of the decisions people are being faced with today are having to make. It's always best to have as much knowledge as possible before making a decision that will impact you and your family's life for the upcoming years.


Ohio Association of REALTORS

U.S. Department of Housing and Urban Development (HUD)

Good news for local investors. This should open up the market a little on rehab properties.

U.S. Department of Housing and Urban Development (HUD)

Downsizing: Today\'s Home Buyers Are Thinking Small

Downsizing: Today\'s Home Buyers Are Thinking Small

Real Estate Blog - The Banks Become Chefs . . . and COOK THE BOOKS

Here's a great dialogue and two blog posts that detail the frustrations out there dealing with short sales in today's market.


Real Estate Blog - The Banks Become Chefs . . . and COOK THE BOOKS