This is a GREAT time to buy a house, and if you're wondering why, take a look at this recent post by my friend Melissa McKinney. Prices in Hartford county, CT are very affordable right now, and so are interest rates. And of course, when interest rates rise, you will lose borrowing power. On a $200,000 mortgage, at 4.00% your payment will be about $1292.00. If interest rates rise just one percent to 5.00%, the same monthly payment of $1292.00 will only qualify you for about $180,000. mortgage. That means you've lost $20,000 in borrowing power, but that same property did NOT lose $20,000 in value in the same time frame. So even if prices are still declining even just a little bit, you're still better off buying now when rates are low. One thing that is pretty sure, interest rates WILL go up again. Buy now while rates are low if you are qualified to do so!
To look at this another way, see Melissa's chart:
The MILLION dollar question... Is it a GOOD time to buy a house?
I get asked this question ALL the time. I try to give my potential buyers the information that they need to make a sound decision and then let them decide. It seems as though it works better if you see it for yourself. The change with the interest rate in the last year has made a big impact on what buyers are qualifying for. So what you qualify to buy today would not be what you would have qualified for last year. Today you would actually get MORE for your money.
After viewing the chart let me ask YOU, do you think NOW is a GOOD time to buy a house??
Serving the North Central Connecticut region, Hartford County, and the communities of Windsor, Bloomfield, Hartford, East Hartford, South Windsor, Manchester, Windsor Locks, Suffield, Enfield, East Windsor, Somers and the Granbys...
Opening Doors to Home Ownership . . . The Master's Key . . . Residential Sales, Short Sales and Foreclosure Prevention, Multi-Family and Investment Properties, Condominium and Property Management
Opening Doors to Home Ownership . . . The Master's Key . . .
Residential Sales, Short Sales and Foreclosure Prevention, Multi-Family and Investment Properties, Condominium and Property Management
Licensed in the State of Connecticut, ABR, CRS, GRI, PSCS, SFR, Notary Public, Lic. #REB.755648
Broker/Owner of The Master's Key Realty LLC, 340 Broad Street, #320, Windsor, Connecticut 06095
To contact Lisa, call 860-688-1400 or send an e-mail to firstname.lastname@example.org
Copyright, Lisa Orme, 2010. All rights reserved.