Thinking of buying a home? You may want to get that done as soon as possible.
Rising home prices along with rising interest rates are two factors that are creating this urgency.
According to most recently published statistics for the metro Denver real estate market, residential homes have appreciated in value by approximately 12% February 2013 to February 2014, and mortgage rates have risen by approximately 1% on a 30-year fixed loan in the last 12 months.
This means that a buyer purchasing a $300,000 home 12 months ago is paying $336,000 for the same home today, and the interest rate at closing is 1% higher. The corresponding monthly payment increases by $146 per month, the buyer needs $7,200 more in a down payment, and the additional amount of interest paid over the life of the loan is $73,535.
If the same trend continues, 12 months from now the same home will cost $376,320, the monthly payment will increase $493 per month and the additional interest paid over the life of the loan increases to $166,342.
The buying power for new homeowners is the strongest in history, but diminishing. I have lender partners that can explain the best options for you in this perfect storm of opportunity. Don’t miss out!