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Saturday, March 30, 2019

Buying A Home Now VS Buying Later? Mortgage Rate VS Price #TimeToBuy #FirstTimeHomeBuyers #MoveUpHomeBuyers #5StarREALTOR #HyperLocal #ChrisBJohnsonREALTOR #TopProducer #FlipandFix #RealEstateInvestor #RentalProperties

Buying A Home Now VS Buying Later? Mortgage Rate VS Price #TimeToBuy #FirstTimeHomeBuyers #MoveUpHomeBuyers #5StarREALTOR #HyperLocal #ChrisBJohnsonREALTOR #TopProducer #FlipandFix #RealEstateInvestor #RentalProperties : Since home prices bottomed around 2012/2013, they’ve surged to new all-time highs, at least nominally (not inflation-adjusted).After the housing crisis,
BY 
Real Estate Agent with Allison James Elite CA. BRE 01501699
 
Since home prices bottomed around 2012/2013, they’ve surged to new all-time highs, at least nominally (not inflation-adjusted).
After the housing crisis, home values lost about a decade’s worth of appreciation, but gained much of it back when real estate boomed, thanks in part to the record low mortgage rates available.
Unfortunately, home prices are predicted to be fairly flat over the next several years, and mortgage rates are expected to rise in 2019 (right?).
So should you buy a property now while rates are still low and home prices have foreseeable flat or even downward pressure, thanks to all that appreciation already baked in?
Or should you wait it out and let home prices pull back first, while hoping interest rates are still low?
Well, first things first, it’s nearly impossible to time the market. Anyone will tell you this, whether it’s a home or a stock or anything else.
Predicting the direction of anything can be a tall order, and real estate is no different.
Home prices are also regional, and nowadays hyperlocal, so it’s not like they’re the same throughout the country.
Not all home prices in the nation can be designated as cheap, average, or expensive – they vary tremendously, and so might their future trajectory.
At the same time, it’d be hard to argue that mortgage rates nationwide aren’t super low. So which is more important here?

Buy a House While Mortgage Rates Are Low? Or Vice Versa…

  • It’s possible to pay more for a house while interest rates are low
  • But also obtain a cheaper monthly mortgage payment
  • And pay a lot less interest over the loan term
  • Thanks to the availability of more favorable home loan financing
Let’s take a look at a scenario where mortgage rates rise and home prices slump to see which situation is more favorable to the home buyer.

Scenario 1: A More Expensive Home

Sales price: $400,000
Loan amount: $320,000 (20% down payment = $80,000)
Mortgage rate: 4.50%
Mortgage payment: $1621.39
Total paid including interest: $583,700.40
Now imagine home prices fall 10 percent over the next year or two, while mortgage rates rise from 4.50% to 6.00%, which while possible, probably isn’t all that likely.

Scenario 2: A Higher Mortgage Rate

Sales price: $360,000
Loan amount: $288,000 (20% down = $72,000)
Mortgage rate: 6.00%
Mortgage payment: $1726.71
Total paid including interest: $621,615.60
As you can see, buying the home at the higher price point with the lower mortgage rate results in both a cheaper monthly mortgage payment and significantly less interest paid over the loan term.
That could also make qualifying easier with regard to the debt-to-income ratiorequirement mortgage lenders impose.
However, the down payment is $8,000 higher on the more expensive house, which could prove a barrier to homeownership if liquid assets are low.
But we’re still looking at overall savings of nearly $40,000 with the larger, yet lower-rate mortgage.
Hopefully this illustrates the importance of low mortgage rates. Of course, there are a ton of variables that can come into play.

About Me

My photo
 
 
Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?
 
https://www.google.com/analytics/web/#home/a69066132w111663562p116541675/
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Friday, March 29, 2019

RENTERS! #TimeToBuy 10 Steps to Buying a Home #INFOGRAPIC #TimeToBuy #FirstTimeHomeBuyers #MoveUpHomeBuyers #5StarREALTOR #HyperLocal #ChrisBJohnsonREALTOR #TopProducer #FlipandFix #RealEstateInvestor #RentalProperties

RENTERS! #TimeToBuy 10 Steps to Buying a Home #INFOGRAPIC #TimeToBuy #FirstTimeHomeBuyers #MoveUpHomeBuyers #5StarREALTOR #HyperLocal #ChrisBJohnsonREALTOR #TopProducer #FlipandFix #RealEstateInvestor #RentalProperties: Oxnard Open House Sunday from 1:00 to 4:00PM If you are thinking of buying a home, you may not know where to start.Here is a simple list #TimeToBuy #FirstTimeHomeBuyers

BY 
Real Estate Agent with Allison James Elite CA. BRE 01501699
 
10 Steps to Buying a Home [INFOGRAPHIC] | MyKCM

Some Highlights:

  • If you are thinking of buying a home, you may not know where to start.
  • Here is a simple list of 10 steps that you will go through to purchase a home.
  • Make sure to ask your agent for details about each step and what else may be required in your area!

About Me

My photo
 
Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
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Thursday, March 28, 2019

How Do You Put Your Housing Cost to Work for You? #Time

How Do You Put Your Housing Cost to Work for You? #TimeToBuy #FirstTimeHomeBuyers #MoveUpHomeBuyers #5StarREALTOR #HyperLocal #ChrisBJohnsonREALTOR #TopProducer #FlipandFix #RealEstateInvestor #RentalProperties : Oxnard Open House Sunday from 1:00 to 4:00PM There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the to...
BY 
Real Estate Agent with Allison James Elite CA. BRE 01501699
 
How to Put Your Housing Cost to Work for You | MyKCM
There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.
The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.
For a homeowner who purchased their home 30 years ago, they have gained nearly $250,000 in equity with 70% coming from price increases. The full results can be seen in the chart below.
How to Put Your Housing Cost to Work for You | MyKCM
According to the Home Price Expectation Survey, a family who purchased a median priced home this January can expect to gain more than $42,000 over the next five years simply from price appreciation alone.

Bottom Line

Your home is one of the only investments you can live inside as you pay it off over time. If you are ready to use your housing costs to build wealth, let’s get together to discuss how to make your dream a reality.

About Me

My photo
 
 
Chris B. Johnson is a REALTOR® who Specializes in Short Sale and REO Transactions. Chris has been Certified as a California Association of Realtors HAFA Specialist, a National Association of Realtors Short Sale and Foreclosure Resource, Chris B Johnson Realtor is a Certified Distressed Property Expert, Certified Short Sale Negotiator, Certified Default Advocate and Certified Pre-Foreclosure Specialist. With a full time staff dedicated to short sale negotiations and transactions, we have been successful with (almost) every short sale to date.  LinkedIn Pro    UpNest    What's Your Home Worth?


The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
 
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