Wow did you see the rates today? They are down to 5.125% for a 30 year fixed mortgage. That is absolutely fantastic. In addition, first time homebuyers can receive an $8,000 federal tax credit.
To give you some perspective, if you purchased a $200,000 house at 6.5% (still considered not bad), your principal and interest payment would be $1,264.14 plus taxes, mortgage insurance and homeowners insurance. If you can get that same loan at 5.125%, the payment would be $1,088.97 per month plus taxes, mortgage insurance and homeowners insurance.
That's a savings of $175.17 per month!!! This may allow you to buy a house for almost $30,000 more or another way to look at it is when the interest rates go up, you lose $30,000 of your purchasing power.
This is why if you are thinking of purchasing a home, now would be a good time to do it. Inventory is still good and the interest rates are fantastic. If the fed thinks that we are starting to get inflation however, they will take actions that will result in the rates going up. Rates can go up as much as one point in a day and it can be devasting to your budget.
If you would like to get set up on an Email Subscription to the Multiple Listing Service so you can see what is out there and what it looks like, just give me a call at 801-792-1257. I will find out what you think you may be looking for and get it set up so you can get the new listings each day as they come on the market.
Also, the Utah Housing Corp program is fantastic for first time homebuyers. If you qualify, you won't need a downpayment and we can have the sellers pay your closing costs. So you don't need very much money to buy a house now. For information on this program you need to call a loan officer with a bank that offers it - mortgage brokers are typically not approved for this program. One loan officer I have worked with on these programs is Rachel Thorell, Academy Mortgage at 801-502-9200. She will be able to tell you over the phone if you qualify for this program and what your payments would be when you purchased.
Call Patty Purdue at Utah Select Realty at 801-792-1257 with any real estate questions.
About Me
- Patty Purdue
- I am a Realtor with Utah Select Realty in Salt Lake City. Prior to being a Realtor I was a loan officer so I have a tremendous amount of knowledge that my clients benefit from when purchasing a home. I provide a free Strategy Session to anyone thinking of buying or selling a home. I will let you know exactly what the market conditions are and how that will affect your real estate transaction. This makes you better prepared to make decisions. Call me at 801-792-1257 to schedule your free, no obligation Strategy Session.
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