Posted by: thepinetree on 12/18/2013 02:58 PM
Updated by: thepinetree on 12/18/2013 03:04 PM
Expires: 01/01/2018 12:00 AM
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What's the Potential Cost of Waiting? ~ From Mark Hughes
Murphys, CA...Many clients have told me over the past couple of years they would like to move up to accommodate their growing families or to downsize now that the kids have moved on. While many have already done so, others have felt encumbered by a current home that couldn't be sold for a price that would cover the expenses...
It turns out, there are advantages to the passage of time. Recently, the benefit for homeowners has been rising values and shrinking loan balances. Together, these factors have created new possibilities for many to sell with a surplus.
If you have considered a change, locking in a payment before interest rates and prices possibly increase may be a good long term plan. Look at how much a payment could potentially change with a 10% price increase and a 2% increase in interest rates:
This is a 27% increase to both the payment and the necessary income to qualify. That's substantially more than the typical pay increase of maybe 3% percent or so.
These hypothetical examples are illustrations for educational purposes only and are not an offer to lend nor a Good Faith Estimate. Examples are for a $250,000 home that rose to $275,000 with a rate increase from 4.50%/4.762% APR to 6.50%/6.95% APR on a zero point 30-year, fixed-rate loan with a 20% down payment, $4,000 in taxes and annual insurance of $580 for the "today" example and $638 for the "tomorrow" example. APRs are calculated using closing costs equal to 3% of the loan amount. Actual costs can be less, and actual rates are subject to change at any time. Qualification for any loan is dependent on individual circumstance and subject but not limited to employment/income, credit history and acceptable liquid assets to close.
The real estate market typically slows in the winter months, and that can be a great time to take action. Most participants are truly serious, and both buyers and sellers become even more motivated in the face of dwindling competition.
Whether you've thought about a move, some remodeling, how to pay for college or any other strategic loan restructuring, I'm here to answer your questions. Of course, I'm happy to help your friends, family and co-workers when the need arises for them too.
Sincerely,
Mark Hughes
Mortgage Originator
NMLS: 268235
Main Street Mortgage
402 Main Street, Ste. G
Murphys, CA 95247
(209) 728-9898
Mark.Hughes@FPFMail.com
www.MarkOHughes.com
I'm proud to recently celebrate my 24th year in Mortgage Banking. Not my first Rodeo as I always say.
I specialize in Government loan programs such as VA, FHA, USDA and HomePath by FannieMae, as well as second home financing with 10% down payment. I routinely structure USDA and VA loans with no money at all required from the buyer. I have no application fees and fast loan pre-approvals.
I'll be happy to answer any questions you or your buyers may have.
NMLS #3257 Licensed by the Department of Business Oversight under the CRMLA, Iowa MBK-2009-0087, North Carolina L-148128, Ohio Division of Financial Institutions MBMB.850147.000, Oregon ML-3337, Washington CL-3257
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