Is Now the Right Time to Buy a Home??or are you waiting for home prices to drop further?

There seems to be Buyers out there that are wondering if it is the "right time to buy", they are concerned and wondering if the prices will drop further. They ask me are we at the bottom, will if go much further? It is difficult to answer that question simply. There are many factors that come into play, with one being location, location, location. If you are looking in a particular market it is best to contact a Realtor and have them do an individual market for you. This will give you a better idea of the housing prices and what that market is doing.

We do know one thing and that is that the interest rates have risen in the past couple weeks. So lets look at those numbers. Michelle and Lori at Edina Mortgage have run a couple scenerios with an increase in interest rates vs. decrease in home sale prices. I think you will be surprised where the real saving are.

Consider the following:
When rates increase by 1% over their current level, the price of a home would have to drop nearly 11% to match today’s payment.
Buying Power Formula:
Rate +1% = Home/Loan -11%

Payment (P&I) 30 year fixed Loan Amount
$1043 4.75% $200,000
5.75% $179,000

Act now to take advantage of today’s historic rates and buying power!

If you have any questions on a home or market, please give me a call...

Michelle Moore and Lori PerpichHome Mortgage ConsultantsEdina Realty Mortgage 17271 Kenyon AvenueLakeville, MN 55044952.898.7035 Office 612.708.4245 Cell952.898.7085 Private Fax Apply on-line: www.ReferToMichelle.com MichelleMoore@EdinaRealty.com
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Increase in Interest Rates!

If you are considering buying a home and just waiting for the "right" time. Don't wait too long you may miss out in the historic low interest rates. The economic reports the last couple days have influenced a slight move up in rates up slightly. Employment report is out tomorrow. Good news in the economy translates to higher interest rates.

Keep in mind the overall cost to of a rate increase is ---- On a $200,000 mortgage an increase of 0.25% to rate means a difference of $29/month. That $29 a month is equivalent to nearly $6,000 in purchase power.

Dakota County First Time Homebuyer Funds Available

Dakota County Community Development Agency (CDA) has funds available for First Time Homebuyers purchasing a home in Dakota County. A Low Fixed Interest Rate, currently at 4.99%. Also down payment assitance is available for qualified buyers. Call me for more information.

Limited amount of funds are available-

Interest Rates remain at historic lows ---- 4.5 % on a 30 year fixed rate this past week. They hit 4.125% on a 15 year mortgage. These rates will not last long. Now is the time to refinance or buy a home.