It is not the price of the home it is the cost!

We often get focused on the price of the home and tend not to think about the cost of the home - that is, the mortage costs. Currently, the home prices are very low as are the mortgage rates. So, not only can you get a great value on the PRICE of the home, you can get it for a whole lot less in mortage costs than you could years ago. For instance, if you compared a $250,000 home in 2003 with a 5% mortgage rate to a $250,000 home today with a sub-4% mortgage rate, you would save you more than $270 per month in costs not to mention that your new $250,000 might have been completely out of your price point in 2003. 

Some real estate analysts think the mortgage rates will increase soon and the costs of the home will increase while the price will stay flat. They argue that now is the time to buy rather than wait for the market to bottom out in terms of housing prices and feel that even though you may get that dream house for a cheaper price, the mortgage costs will be higher.  See the link.

Enjoy!

  • April 18 2012 - Atlanta
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