Summer is in full swing and everyone is soaking up some sun and family fun! We are already halfway thru July, which means the new school year is right around the corner. Are you looking to make a move before the kids head back? We've got some good news for you!
Now is the perfect time to purchase your next home!
There are a several factors causing this to be a good time to make your move! From taking advantage of the sellers market, to the local inventory of homes increasing, to excellent mortgage rates which could increase your home budget! It's time to jump on in and find that new family home you've been thinking about buying!
Local Housing Inventory is on the rise
Over the past few months a few more properties have been hitting the local MLS each week. We are up from the historic inventory low we were seeing in late winter and spring. The number of available homes has almost doubled. This doesn't mean they stay on the market long, but means you have more options than you would have had last fall.
Top dollar for your Current Home
In today's market, people are paying a premium for homes and they are selling quite quickly, often for full price. The upside means you are likely to sell quickly and receive close to asking price for your current home - Exciting! No matter when you purchased, it's likely you have gained a decent amount of equity and will have cash on hand after paying off your mortgage. This presents an opportunity and gives you the flexibility to move into a home at a higher price point. You may have to offer full price for that beautiful home you have your eye on, but in a different market the home may not have been a possibility.
Interest Rates remain at all time Lows
The best piece of this the "Perfect time to buy" puzzle is today's Mortgage Rates. Despite recent concerns about inflation, our rates remain at all time lows. They have actually decreased even more this past week! Simplicity Mortgage can lock your loan at an awesome rate, allowing you to save thousands, tens of thousands, over the life of the loan! We can walk you thru various scenarios to help you analyze which may be the best financial fit for your family.
Lower Interest Rate means Increased Purchase Power
How much can the interest rate effect your monthly expenses or overall home budget? We laid out a few examples to help show the impact of the interest rate on payment, savings and purchase power.
Home Price Interest Rate Monthly Payment
$300,000 5.0% $1610.00
$300,000 4.0% $1432.00
$300,000 3.0% $1264.00
$350,000 3.0% $1475.00
Looking at this scenario you can see that a reduction of a 1% in interest equals about $170/month. Over time, this savings equates to about $2,000/year or $10,000 over 5 years. That is some pretty significant savings!
You have a couple of options for this savings.
1. Save or use for other purchases.
2. Put the money back into your home thru interest only payments, decreasing how long it will take to before you are mortgage free.
3. Utilize today's low rates to increase your purchase price a bit, which could be the most exciting for those looking for a larger family home. In our example, you could actually increase your budget about $50,000 if you rate is 1% lower!