As discussed in my last blog, unless you are a cash buyer, you have to consider the cost of financing the home.
Remember – Price PLUS Financing EQUALS the cost of a home
Today buyers have a unique opportunity….
· Historically low interest rates
· The ability to lock in rates for thirty years
According to Freddie Mac, from 2006 to the start of the financial crisis in 2008, the average rate was 6.29%. Since then, the average rate has been 4.92%.
Today, a Charleston AFB home buyer can get a 30 year-fixed-rate-mortgage at approximately 5%. However, rates these low may soon disappear.
In the administration’s REFORMING AMERICA’S HOUSING FINANCE MARKET: A REPORT TO CONGRESS, the government states:
…our plan also dramatically transforms the role of government in the housing market. Going forward, the government’s primary role should be limited to robust oversight and consumer protection, targeted assistance for low- and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response…
Under our plan, private markets … will be the primary source of mortgage credit and bear the burden for losses.
According to AnnaMaria Andriotis, writer for Market Watch:
“In the proposals were changes that will mean more expensive mortgages, with higher fees and, probably, higher interest rates, larger down payments and, in the near term, fewer lenders to choose from.”
“In the proposals were changes that will mean more expensive mortgages, with higher fees and, probably, higher interest rates, larger down payments and, in the near term, fewer lenders to choose from.”
Additionally, many experts have speculated that limiting government support may cause the 30-year-fixed-rate mortgage to disappear.
Mark Zandi, Chief Economist of Moody’s Economics.com stated:
“A private system would likely mean the end of the 30-year fixed-rate mortgage as a mainstay ofU.S.
“A private system would likely mean the end of the 30-year fixed-rate mortgage as a mainstay of
The COST of a Charleston AFB home is significantly impacted by the interest rate. Today, we can get a 5% mortgage and lock it in at 5% for the next thirty years!! But for how long?
**Information provided by the KCM Crew via www.KCMblog.com**
Buying or selling a home doesn’t have to be hard, but choosing the right Realtor DOES make a difference. I specialize in making first-time home buying a great experience for military families moving to the
Jodie Hurt
I specialize in helping military families enjoy a smooth PCS in and out ofCharleston
I specialize in helping military families enjoy a smooth PCS in and out of
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