REALTOR®
serving
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Buyers
Making the best informed decision, when it comes to buying your home, is the most valuable tool you can own. I want you to walk away feeling confident that you understand exactly what is going on.
Click on the links below for great home-buying information.
Q: With home prices so high, should I wait to buy
until prices come down?
A: Well, probably not. Prices may indeed come down, and
might even come down significantly. However, prices are directly related
to interest rates. When interest rates fall, that makes monthly payments
more affordable and prices get bid up due to an increase in buyers. Conversely
prices fall when interest rates go up. Let's assume that you are looking
at a home that is listed for $200,000. With interest rates currently running
at about 6.5%, the monthly payment on a $200,000 loan would be $1,264.14.
If interest rates continue to rise (a very likely scenario), the price
of that house might fall to $150,000. However, at an interest rate of
10%, the $150,000 mortgage loan would have payments of $1,316.36. As you
can see any savings in the cost of the home would be offset by an increase
in the interest cost because of a higher interest rate. In this example,
there would be no reason to wait, and this doesn't even take into account
tax savings, which would add to the reasons to buy now instead of waiting.
Moving
or Relocating to Portland Oregon.
Professional Portland Relocation
Services.
http://www.relocationtoportland.com
Information on Portland Oregon Homes for Sale.
