How Record Low Interest Rates Impact Your Home Purchasing Power
According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.96%. This is still near record lows in comparison to recent history!
The interest rate you secure when buying a home not only greatly impacts your monthly housing costs. But also impacts your purchasing power.
Purchasing power is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford will decrease. If you plan to stay within a certain monthly housing budget.
The chart below shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments between $1,850-$1,900 a month.
How Record Low Interest Rates Impact Your Home Purchasing Power
With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, $10,000). Experts predict that mortgage rates will be closer to 5% by this time next year.
Act now to get the most house for your hard-earned money.
Call Us Now To Sell Your Home…
Office: 909.985.9392 or Text Us: 714.657.6634
[gravityform id=”15″ title=”true” description=”true”]
Why The Housing Market Is Not Recovering and Will Not For a While…
This article hit this morning and we support its 6 reasons: Declining Job Market Shared Households increases inventory. Foreclosures adding inventory and no relief in sight. Tight Lending Restrictions...getting tighter. Falling Home Prices..."Educated" Buyers say...
Homeowner Associations Foreclosing…Buying Homes For A Couple Thousand Dollars!
Home Buyers Tapped…Home Prices Continue To Drop In All 50 States
Do banks hold on to foreclosure inventory…Shadow Inventory…?
Of course they do, but in Los Angeles at least, they're getting a big incentive to dump it fast. L.A. last week passed a new city ordinance that fines banks, servicers, whoever owns the foreclosed property, up to $100,000 for letting the property fall into disrepair....
Record Number Of Foreclosure Sales Cancelled Due To HAFA…Short Sales
Lenders are canceling more foreclosure sales in California than ever before, and new financial and political demand for short sales could be the culprit. Lenders canceled nearly 22,000 California foreclosure sales in June, driven mostly by JPMorgan Chase (JPM: 40.48...
Los Angeles Gets Tough On Lenders That Foreclose And Let The Property Deteriorate!
Innovation…Steve Jobs…Being successful In A Tough Economy!
I’m sure Kris and I are not the only two people that often wonder what causes some people to do so well and continually prosper in this tough economy. We’re both huge fans of Steve Jobs...talk about inspiration! Watch the video attached to this post, it’s so...
60 Year Old Couple Lose Their Jobs And Their Home…Middle Class Disappears
In 2008, David LaRochelle and his wife, Debbie, owned two houses: a single-family home in Southern Florida and a double-wide mobile home in Plains, Georgia, near her parents. They both worked at a resort hotel in Islamorada, Florida and earned a combined income of...
Does the Government Have Authority in Private Label Mortgage Securities?
By: Diana Olick Today the FHFA, overseer of Fannie Mae and Freddie Mac, made an unprecedented move, issuing 64 subpoenas to "various entities," seeking information on private-label mortgage-backed securities in which the two invested, specifically "the contents of...
HAMP Help for Unemployed Homeowners
In order to apply for this program, your servicer must be a participant in the government's Home Affordable Modification Program (HAMP). You can check the HAMP website to find out if your servicer is a participant. If your servicer is on the list, then you can phone,...
Microsofts Paul Allen Pays $25Million on Malibu's Billionaire's Beach
Here are a couple of celebrity real estate tidbits to pass along as we recuperate from our July 4th holiday weekend: Paul Allen Buys in Malibu: TechFlash (by way of Wall Street Journal) reports that Microsoft founder Paul Allen bought a contemporary Malibu beachfront...
Going Gaga for Los Angeles…Lady Gaga Rents Bel Air Casa for $25K/Month
Glam rock star/provocateur Lady Gaga is presently on tour, but when she comes in for a landing in LA, Gaga heads to a leased home in the Bel Air area, according to Realestalker, where she pays $25,000 a month in rent. Yup — Lady Gaga rents, just like lots of...
Woody Allen Movie "Sleeper" Home in Foreclosure…Again!
Last May, the house used in the Woody Allen comedy “Sleeper” avoided foreclosure, but it looks like a foreclosure filing has been made against the house again, according to the Denver Business Journal. The home, located at 855 Visionary Trail, Golden, CO 80401, is...
FHA's "Hope For Homeowners" Re-Fi Program Process A Whopping 6 In May!
Pierce Brosnan Leaving Malibu? Home For Sale at $3.9Million
Dashing, debonair movie star Pierce Brosnan is selling his Malibu home for $3.9 million, according to the LA Times. Brosnan’s home is described as a two-story, Mediterranean-style artist’s retreat, and is located just steps to the beach. Unfortunately, no interior...
Tracy Morgan Rents NYC digs for $25K per Month
The outspoken and somewhat crazy comedian Tracy Morgan - known and loved for his hilarious work on 30 Rock and Saturday Night Live - is taking up residence in some fresh new Manhattan digs after his tropical fish tank caused a fire that damaged his Upper West Side...
Short Sales Up 74% In Southern California…
The number of transactions in which a home sells for less than the owner owes the bank is up 74% in the region this year, mainly due to a doubling of those so-called “short sales” in the Inland Empire, the Southern California Multiple Listing Service reported. County...
Equator Introduces Short Sale and HAFA Software for Smaller Firms
Equator, a software provider for the default servicing industry, has launched Professional (PRO) Short Sale and PRO HAFA modules to automate the offer management workflow for smaller firms operating in the REO industry. The software is part of Equator’s PRO...