Now Buy that Home in 2015

Now buy that Home in 2015

Easiest time to buy   

Mortgage interest rate are still low..

See how your mortgage payments go up  as interests rates move higher in the chart below as rates increase. 

Remember Mortgage payments are made up of interest payment along with payments you are actually making payments on the home you want to buy, similar to car payments.

Consider too, housing prices has gone up the past 18 plus months. If you  purchase a home in the past 18 months, your equity already been building. Your return on your investment is better than if you had placed money in a bank, savings account, checking accounts other places. This equity would only increase more when the economy improves more. With the economy growing  will only cause raising home prices, interest rates, and rent payments, if you are a renter. Renters make owner richer. 

We all have to live somewhere. Your rent is subject to increases with every new lease you sign. In owning your home, your mortgage payment, is your "rent"; your rent payments is your mortgage payment. These payments are lock in for the length of the loan, which is normally 30 years. 

After 30 years, you no longer paying rent! Now if you did not buy a house. You be perhaps paying higher rent or living with other people, perhaps with your parents if they are still alive, or you be living in a dump. 

I can not predict your future. Ofter this are determined by decisions made in the past. Being a real estate coach. I am capable of mapping what your possibilities may be if you do take the present, look  into your possibilities now, and see if you can make buying a home a real opportunities for yourself today. You are responsible for your decisions. If you are a responsible person, I can tell you. Your wealth would be more buying a home as oppose to paying rent and moving around. If your rent goes up, your income stays the same or increases slightly, the amount of expendable income you have to do the things you want, can go down. Budgeting, sacrificing are going to be needed.

Below is a chart of a Fix 30 year loan (360 month of payments) on a $ 100,000 dollar home in increments

of 1/8%.This the PI portion of the PITI payments, consisting of the combination of principal and interest payments. The way to look at the chart, take the difference between the monthly payments, multiple that by 12 (12 months) then multiple that by 360 (this is the term of the loan in months)

 Therefore, Using 4 1/8 % and 4 ½ %. Will be $ 22.04 difference multiplying 12 months, will give 264.48 a year more in mortgage payments. Multiply this by 30 year, gives you a good idea how much more money you be paying on the loan for the home. ( 264.48 x 30= $ 7934.40) This overall view gives a good idea why raising interest rates are important and what the cost is when interest rates are raising. 

       

$ 1000,000 Home loan at 4.00 %	$477.42 MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.1/8 %	$484.65 MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.1/4 %	$491.94  MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.3/8 %	$499.29  MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.1/2 %	$506.69  MONTHLY PAYMENTS
$ 1000,000 Home loan at 4. 5/8 %	$514.14  MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.3/4 %	$521.65  MONTHLY PAYMENTS
$ 1000,000 Home loan at 4.7/8 %	$529.21 MONTHLY PAYMENTS
$ 1000,000 Home loan at 5.00 %	$536.82  MONTHLY PAYMENTS

 2015-year-to-buy-a-house.