Sep
15
Now is the time to invest in your future
Posted by Steve McTyeire under For Buyers, General Information
Even with all the gloom and doom in the media, now is a great time to make an investment in your future. We are right on the edge of where we were 30 years ago when mortgage rates were about where they are now. Then they started going up, and up ,and up some more until they were close to 18%. It took a long time to get the rates back to around 6%.
At 6%, the principle and interest is $6 per month per $1000 financed. So, at today’s average price of $200,000 the principle and interest payment is $1200 per month. But, if you want to gamble with your future, just wait for the rates to get back where they really should be at about 9% then the principle and interest on that same $200,000 home will be $1600 per month. If you believe history will repeat itself and the rates go back up to 15%, your principle and interest will be a whopping $2500 per month for that same $200,000 home that you can move into today for less than half that monthly payment.
Now is the time to get the home you want for your family. The mortgage companies, as a rule of thumb look at one weeks pay as what you can qualify to pay as a monthly payment. You think it is tough to come up with $1200 a month, then how much harder will it be to come up with $2500.
Still not convinced. Here is my personal story. In 1976 I bought my first home at 6% interest and in 1979 I bought my second home and the rates had doubled to 12% in just 3 short years. It took 30 years for rates to get back to 6% and I feel that once we get over this little bump in the economy they may never get back to 6%.
Get your piece of the American pie while you can. The time is better than ever.
I’ll leave you with this. 25 years from now there will be twice as many people living in this country, about 600 million. You know they will have to live somewhere. Do you really think prices are going to drop when there are going to be more people needing more homes. Get yours now.
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