Posts Tagged ‘Rising Interest Rate – Buy Your California Home Now’

Interest Rates Are Rising – Now Is The Time To Buy Your California Home.

July 6, 2013

 

Image

Interest rates have recently been rising at an escalated rate.  The longer you wait to purchase your new California home, the higher the risk of you not being able to afford your intended home due to the rising interest rates.  This is based on the assumption that rates continue to hold or increase compared to the lows we had just weeks ago.  Below comparison of May 2013 interest rates to June 2013 interest rates clearly demonstrate the resulting shrinking purchase power due to rising interest rates.

Scenario

 

As of May 3rd

 

As of June 25th

Purchase

Loan amount (80%LTV)

 

Rate w/ 1 pt

Mtg Payment

 

Rate w/ 1 pt

Mtg Payment

Price

20% down – SFR

 

30 Year fixed

Princ+Int

 

30 Year fixed

Princ+Int

$300,000.00

$240,000.00

 

3.500%

$1,078.00

 

4.500%

$1,217.00

$350,000.00

$280,000.00

 

3.500%

$1,258.00

 

4.500%

$1,419.00

$400,000.00

$320,000.00

 

3.500%

$1,437.00

 

4.500%

$1,622.00

$450,000.00

$360,000.00

 

3.500%

$1,617.00

 

4.500%

$1,825.00

$500,000.00

$400,000.00

 

3.500%

$1,798.00

 

4.500%

$2,027.00

$600,000.00

$480,000.00

 

3.625%

$2,190.00

 

4.875%

$2,541.00

$700,000.00

$560,000.00

 

3.625%

$2,554.00

 

4.875%

$2,964.00

$800,000.00

$640,000.00

 

3.875%

$3,010.00

 

5.000%

$3,436.00

$900,000.00

$720,000.00

 

3.875%

$3,387.00

 

5.000%

$3,866.00

$1,000,000.0

$800,000.00

 

3.875%

$3,762.00

 

5.000%

$4,295.00

 

In summary, depending on the purchase price and loan amount, the rate change from early May 2013 to end of June 2013 has lowered the affordability from approximately $50,000 to $125,000 in purchase price.  I hope you find this information useful and conclude that now is the time to buy!!

If you are interested in selling your home or purchasing a home, contact Bandele Oguntomilade at 818-825-6996.  Bandele Oguntomilade is a Certified Residential Specialist and the Broker and Owner of Bogun Realty and Luxury Homes in Woodland Hills, California.  You may visit us at http://www.BogunRealtyAndLuxuryHomes.com

Advertisements