House Payment $575 – REALLY?

So . . . Perhaps you are renting . . . or you might have bought a house a few years ago and would love to move because you are outgrowing your house . . . or want your kids in a different school . . . or you just want to live in a different house.

BUT . . . the news is yelling all this confusing stuff at you about how horrible the real estate market is, and you might even think that getting a loan to buy a house is IMPOSSIBLE.

The REALTORS are singing bliss – Talking about “LOWEST RATES EVER” and “House Values are lower than ever” and that THIS is EXACTLY the right time to buy a house.

What does all of that mean in plain English?

I decided to give you some real-life information – Something you can easily understand in plain dollars and pictures, so I have selected an area of Nashville, TN – The East side where 1st time and “move up” buyer homes are abundantly available – LOTS of choices.

I am assuming:

4.5% Fixed interest rate

30 year FHA loan

I am assuming that you have good credit (score above 640)

We’ll assume that the Seller is willing to pay your Closing costs.

Your estimated cash required at closing will be 3.5% of the purchase price in these examples. this cash can be “gifted” to you by a relative . . . and there might even be some ZERO cash required options available.

Now that the ground rules are set, let’s look at some examples.

1. Price $79,900 – Cash $2,800 –  Payment @ $575/month – 3 Bedroom – 2 Bath – 1200 Square foot house on 1/4 acre lot.

2. $100,000 – Cash $3,500 – Payment @ $700 – 3 Bedroom – 2 Bath – 1898 Square feet – 1/3 acre – 1 car garage – good condition but needs freshening up.

3. $125,000 – $4375 – Payment @ $775 – 3 Bedroom – 2 Bath – Historic Home in great condition – 1472 Square feet – 2/3 acre

4. $150,000 – Cash $5,250 – Payment @ $ 935 – 4 bedroom – 2 bath – 1550 Square Feet – 1/3 acre – COMPLETELY renovated – 2 car detached garage

5. $200,000 – Cash $7,000 – Payment $1235 – 4 Bedroom – 3 Bath – 2100 Square feet – 1/4 acre – Renovated

6. $250,000 – Cash $8750 – Payment $1600 – 5 Bedroom – 3 Bath – 3000 Square feet – 1/4 acre lot – Great condition

7. $300,000 – Cash $10,500 – Payment $1820 PI – 5 Bedroom – 2 Bath – 2500 Square feet – 2/5 acre – Detached garage – renovated

So . . . THERE YA HAVE IT!

Now for a dose of reality. These interest rates are not going to stay this low forever. I believe that the day is coming (soon) when rates will begin to climb . . . as they climb, the payments above will rise.

when the market is down . . . THAT is time to BUY.

Haven’t you always heard the ultimate investor strategy?

Buy LOW – Sell HIGH!

NOW is LOW . . .

It’s time to buy 🙂

I’m just sayin’

Best,

b

If you’re in the mood to explore home purchasing possibilities in Middle Tennesse, contact me . . . I’m poised and ready to get the process rolling.

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About Barry Owen

Residential Real Estate Principal Broker and Founder of Pareto Realty, LLC. Creating the quintessential real estate firm with emphasis on "Live, Work, & Play" balance . . . and a true Performance Oriented environment for Real Estate Professionals. Serving the Real estate needs of Home Buyers and Sellers in Middle Tennessee.
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