ComeBuyAHouse.com » market prices http://www.comebuyahouse.com/wordpress Come Buy A House in Seattle Tue, 22 Jun 2010 18:56:24 +0000 en hourly 1 http://wordpress.org/?v=3.0 Buying Now VS Waiting ~ pro’s and con’s http://www.comebuyahouse.com/wordpress/2010/03/11/buying-now-vs-waiting-pros-and-cons/ http://www.comebuyahouse.com/wordpress/2010/03/11/buying-now-vs-waiting-pros-and-cons/#comments Thu, 11 Mar 2010 18:47:19 +0000 hensley.lynette http://www.comebuyahouse.com/wordpress/?p=293 The chart below may look foreign to you. PLEASE contact me if you don’t understand–you need to fully understand this graph. I will be glad to explain in person, by phone, by email. Below is based on $180,000 loan amount –

  • If you bought today with a rate of 5% your payment would be $966 before taxes and insurance
  • If house values went down 10% and rates go back up to 6% (the average for 30 year fixed loans) the payment would be $971 before taxes and insurance.
  • If house values didn’t appreciate over next 12 months and rates go back up to 6%, the payment would be $1,079 before taxes and insurance.
  • If house does appreciate (which it will, appears market is stabilizing, especially in price range below 400k) and values go up 5% and rates go back up to 6% which is 30 yr fix average the payment would be $1,079 before taxes and insurance.

Bottom line…Historically low rates, Home prices at 2004/2005 levels, now is the time to buy.
Other items to consider:

  • $8,000 tax credit if you’re in contract by April 30th and closed by June 30th. You can amend your 2009 tax return and get an $8,000 check back.
  • Standard interest write off – Check with your CPA for exact amount. It’s based on your income / estimated interest paid on the $180k loan amount you should receive $2,000 to $3,000 back at end of year.
  • If you’re a 1st time buyer you qualify for an additional tax credit “MCC program“, this is offered through WSHFC – again, based on your income / sale price this will be $2,000 to $2,500
  • Down payment assistance available up to $10,000
  • No house payment for 30 to 59 days

Once you take into account the tax savings $4,000 to $5,500, your actual payment once you receive the refund is $333 to $458 less per month. Granted you don’t receive this until the beginning of next year, unless you amend your W4 withholding you can start receiving right away.

 

Interest Rate Vs. Price Changes  
 
Original Loan $ 180,000.00          
             
Price Change

0%

-5%

-10%

-15%

-20%

  
Loan Amount $ 180,000.00 $ 171,000.00 $ 162,000.00 $ 153,000.00 $ 144,000.00  
             
Interest Rate Monthly Payment          

4.000%

$859.35

$816.38

$773.41

$730.45

$687.48

 

4.500%

$912.03

$866.43

$820.83

$775.23

$729.63

 

5.000%

$966.28

$917.96

$869.65

$821.34

$773.02

 

5.500%

$1,022.02

$970.92

$919.82

$868.72

$817.62

 

6.000%

$1,079.19

$1,025.23

$971.27

$917.31

$863.35

 

6.500%

$1,137.72

$1,080.84

$1,023.95

$967.06

$910.18

 

7.000%

$1,197.54

$1,137.67

$1,077.79

$1,017.91

$958.04

 

7.500%

$1,258.59

$1,195.66

$1,132.73

$1,069.80

$1,006.87

 

8.000%

$1,320.78

$1,254.74

$1,188.70

$1,122.66

$1,056.62

 

( *this is for illustrations purposes only, rates and payments subject to change…had to put the disclaimer in there;)
Kudos to K. Carlson of ARG for the compilation

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