Home Prices – Interest Rates – The Perfect Storm

I ran some numbers today just to show what “Fence Sitters” may be costing themselves by taking no action when the conditions are ideal for most anyone who is in the market and qualifies to buy a home.

The “Fence Sitters” are the ones who will sit and watch and wait, and wait, and wait… they wait for ideal conditions to appear. They are the ones who just know, they can feel it in their bones they know that rates are going to get better, even though rates are at close to 40 year lows – right now! They also know that home prices are going to come down and still go lower maybe another 5% or even 10% lower than they are right now, even though home prices in Utah are close to what they were back in 2003! Are you a fence sitter? Don’t miss it, Don’t blink!

First time home buyers or those that haven’t owned in the past three years more than likely will qualify for the governments’ $7500.00 tax credit. Provided they don’t use a grant program. I qualify folks on what they can afford as a Monthly Payment which translates into a Home Price Range. I want to illustrate what waiting will actually cost in real dollars.

If you want a $320,000 loan or if you qualify for a $1766. P&I Payment
$320,000.00 @ 5.25% = $1,766.00 - $1,766.00 @ 5.25% = $320,000.00

$320,000.00 @ 6.00% = $1,918.00 - $1,766.00 @ 6.00% = $294,700.00

$320,000.00 @ 6.50% = $2,022.00 - $1,766.00 @ 6.50% = $279,540.00

$320,000.00 @ 7.00% = $2,128.00 - $1,766.00 @ 7.00% = $265,566.00

$320,000.00 @ 7.50% = $2,237.00 - $1,766.00 @ 7.50% = $252,680.00

$320,000.00 @ 8.00% = $2,348.00 - $1,766.00 @ 8.00% = $240,775.00

Payment will go up substantially for the exact same home!
OR
You simply can’t buy as much home for the very same payment!

FACT: Rates are Phenomenal - now!

FACT: Home Prices are Lower and Fantastic!

FACT: We are in the PERFECT STORM! Remember the movie?

Home prices and interest rates are subject to change and both most likely will go up.

I truly believe that once Obama is sworn in as President on January 20th - interest rates are going to go up. I believe they will be around 8% sometime in 2009 - they have to go up to help fix the economic disaster our country is currently facing!

Who do you know who is currently renting but who should buy a home? CALL ME

Who do you know who wants to invest in real estate? CALL ME

Who do you know who want to move up or move down? CALL ME

And don't wait......CALL ME today!

Bill Gillane
(801) 573-2146 Direct Line
(801) 838-8150 Office
Service One Home Loans
Senior Loan Officer
Principal Lending Manager

I do expect & encourage folks to copy & paste this. I would ask only that you leave my contact information in place. Thank you.