GOOD TIME TO BUY? You bet it is! I have been a Real Estate Professional for 22 years and I have never seen a better time to buy! If you have good credit and about a 3% down payment, you can find a mortgage as low as 5 1/8% for a 30 year fixed mortgage. In plain English, you can borrow $100,000 for 30 years at 5 1/8% and you principal and interest payment will be $544.49 per month. Of course you need to add PMI (Private Mortgage Insurance) of approximately $40 per month and Taxes and Homeowners Insurance of approximately $150 per month and you can own a home with a payment of approximately $735 per month.
When I started selling Real Estate in 1986, interest rates were 12 and 13%. Remember that in 1980 and 1981, mortgage interest rates were 20%. Not until late in 1987 did we see rate below double digits, below 10%. This is to illustrate what a great bargain today's rates really are.
Add all of this to the Stimulus Bill that was just signed by President Obama and you may have the ingredients for a turn around in the Real Estate Market.
A GOOD TIME TO BUY? YOU BET IT IS!
Rudy Koch
