Friday, March 14, 2014

Mortgage calculator does the math....

The mortgage forecast from most reliable sources is that mortgage rates will be increasing over the next year.  By next Spring, 5.5% is a very likely projection.  

What does this mean to home buyers who are waiting to buy their dream home?  Let’s look at some math…

For a mortgage amount of $350,000…which is about an average home value in Chester county 

-At the current average rate of 4.5% the note payment is $1773.40
-At the projected rate of 5.5% the note payment is $1987.26

So…what does a $213.86 difference in payment mean to mortgage amount/buying power?

By simply waiting to buy for a year - the house value you will be able to afford is reduced by 42k!  

That amount is the difference between a $360,000 house and a $400,000 house.....maybe one less bedroom , maybe a longer commute, maybe less acreage, or compromising on the school district, or fewer upgrades...

That puts into perspective what buyers need to do to buy their dream home now.

Information courtesy Michael Lamborn - Coldwell Banker Home Loans

Check out Do's and Don'ts to maintain and improve your credit score. or other mortgage relatedarticles.

For more articles visit real estate tips 

Bela VoraREALTOR®, 
Coldwell Banker Preferred - Exton
Office: 610 363 6006; Cell: (484) 947 3127
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