Is Now a Good Time to Buy?

Thursday 5/26/11 by The Barringer Team


And here is why……

I know prices are dropping still (although last month they went up slightly) but is this a good time to buy? The answer is a resounding YES. If you bought a $200,000 dollar home (and for the purpose of illustration obtained a $200,000 loan), and that house drops 10% in the next year the math is easy, you just lost $20,000 BUT - and this is a big BUT - if you obtained a loan today for that house at 4.25%, and if that same loan in one year costs 6% then the difference in payment is a lot LESS if you buy the house now. ($200k @ 4.25% = $984 / $200k @ 6.0% = $1,199) for a difference of $215 every month Over 30 years that difference is a whopping $77,400! One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves.