This past week, 30 year fixed rates dropped below 4% for the first time in over 50 years.Â
For example, this means that a $150,000 mortgage taken over 30 years would be about $715 a month.Â Despite the historically low rates, existing home sales are still stagnant and there seem to be a lot of potential buyers staying on the sidelines.
The "Move Up" buyer seems to be most affected.Â Statistically speaking, a familyÂ considers a move every 5-7 years soÂ this is the home owner who bought during the boom in 2005, 2006 and would normally be ready to move up from their starter home.Â Many of these home owners are upside down on their mortgage ( owe more than the home's value ) and are unable to take advantage of the combination of price and interest that should make this market so attractive.
If (and that's a big IF ) you are able to make a move now it is an EXCELLENT time to do so.Â Consider the following.
These are only raw numbers, and everyone's situation is different.Â However, if you are in a situation where you are considering a move up purchase, it may be worth looking into.Â Â Â
PLEASE PLEASE PLEASE..don't venture into a transaction blindly.Â Get allÂ your financial informationÂ in order, get all your numbers and scenariosÂ up front, Hire an experienced agent to help you with the transactions ( preferably me ), and use a reputable mortgage and title company to put the deals together. ( preferably Howard Hanna mortgage and Barristers Title. )
I hope you have found this information valuable.Â Next time we will look into buy vs rent and the 1st time buyer.