Detroit Real Estate

I have a Northville home buyer that asked me why buy now?  The #1 reason to buy now is because of the interest rates.  Interest rates have never been this low.  He was on the fence on whether to buy now or next year.  The whole reason to buy now is the value you can recieve because of the interest rates. 

If you are looking to buy a Northville home, it is a great time to buy because of the interest rates.

Lets say you want to get a $350,000 loan, right now you could get a 30 year fixed loan at 4.25%.  That gives you a payment of $1721.79 a month assuming you don't have PMI .  If rates go back up to 5.5% like they were about a year ago  you could only get a loan of $303,000 to get the same payment of $1229.84.

That is a $47,000 difference.  That's a lot of money and whole lot more house for the same payment.  So right now you can get a bigger house or more expensive house for what interest rates were a year ago. 

I can't predict where interest rates will be in a year, but if they go up you will get approved for a smaller loan.  So if you are in the market to get a Northville home, now isn't a bad time to buy because of the interest rates.

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My quote of the day:

Most people never run far enough on their first wind to find out they've got a second. Give your dreams all you've got and you'll be amazed at the energy that comes out of you.
                                                                                William James