This morning I was reading my favorite fishing site when a poster asked if mortgage rates would drop. I am not sure if or how much the rates will drop but I believe the rates will fall. With that said, the rates are really, really low from a historical level and a half-point drop is not significant when looking at your monthly payments.
The MOST important factor affecting your payments is your purchase price. If your realtor doesn't locate and negoiate the lowest price, shame on you and the realtor. And remember, price isn't always the variable you seek to maximize. VALUE is rubber meets the road.
Always "Buy to Sell" and you'll never go wrong...it may not be the least expensive route, but it was always be the best investment. Here are my comments from the post. Enjoy. TW........
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you really shouldn't wait to buy a home that you will live in and use for a half point drop in mortgage rates...the price difference isn't significant.
$200K, 6%, 30 years = $1,199/month
$200K, 5.5%, 30 years = $1,136/mpnth or $63 less.
The price of the home has a far greater impact...to get to the $1,136/month amount, you would need to spend $190K (or $10K less).
Focus on the best house value and don't fret too much about the interest rate (always fret but not TOO much).
Mortgage rates may drop but perhaps not enough to postpone plans for a new home...have your realtor look for the values or drop me a note and I will. If you have the patience and time to wait, there are a few bank owned properties available...worth a look but you have to be patient.
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