What is the True Cost of the Interest Rate Increase?
Dear Friends,
It’s probably no surprise that rising interest rates have a significant impact on your pocket book.
But how much of an impact? The True Cost may shock you!
Consider this:
The average stay in a home is 5 to 7 years
according to the National Association of Realtors®.
Knowing you like to stay informed, we have provided three real-world home buying scenarios in the graphics below. From these hypothetical comparisons, we hope you can get a better idea of the true cost of the interest rate hikes that are expected in the near future.
Assuming that you remain in your new home for 7 years, it is very clear the HUGE impact of rising interest rates.
WAITING TO BUY could cost you THOUSANDS of dollars!
(Visit our website to view larger PDF graphics of these three scenarios.)
Home “A” Costs $150,000
At the current interest rate of 4.875%, the monthly payment will be $797.
If you wait until the interest rate rises to 6%,
your monthly payment will increase by $85,
for a total annual increase of $1020!
If you stay in that home for 7 years,
you will be spending $7140 MORE!
What could you do with an extra $7140?
Waiting to purchase this $250,000 home could cost you
$140 per month
$1680 per year
If you stay in that home for 7 years,
you will be spending $11,760 MORE!
What could you do with an extra $11,760?
What could you do with an extra
$21,840?
Thinking of buying? Now is a great time, if you want to save $$ in your monthly budget, as well as over the life of your potential mortgage.
Are you waiting for a lower purchase price?
The “savings” of a few thousand dollars off the purchase price will actually COST you THOUSANDS when the interest rates rise.
Don’t wait to make your next Real Estate move.
Call Now
to take advantage of
High Inventory and Low Interest Rates!
As experienced REALTORS®, and long-time North Idaho residents, we can provide an impressive list of professionals whom we’ve come to trust over the years. With our expertise in guiding our clients through all kinds of Real Estate transactions, we are uniquely qualified to help you achieve your real estate goals in 2011!
We’ll help you navigate through every phase of the process.
Randy Oetken 208-660-0518
Christy Oetken 208-660-0506
Oetken@RealEstate-Browser.com
Oetkens Named 2011 Windermere Coeur d’Alene Realty Top Listers
Here’s a “sneak peek” at our Front Page Ad that will be published in tomorrow’s Coeur d’Alene Press.
Thinking of selling? We’re hard workers. Put us to work for you!
Call us for your FREE Comparative Market Analysis.
To see what your home, land, investment or commercial property is worth in today’s market, call
Randy Oetken
208-660-0518
or
Christy Oetken
208-660-0506
of
Windermere Coeur d’Alene Realty
Oetken@RealEstate-Browser.com
We will work hard for YOU!
Visit our websites:
New Listing: Riverfront Acreage with House, Cabin, Shop & Garden House
We just listed this beautiful home on the Coeur d’Alene River:
We hate to brag, but we can’t help but notice the noteworthy comparisons between this lovely property and its namesake, a beautiful National Park on the Emerald Isle:
The charming town of Killarney Ireland is situated in the southern region of County Kerry, snuggled between sparkling lakes, deep forests, and high peaks. County Kerry is famous for its mountain ranges, cliff-filled coastlines, and beguiling islands and peninsulas. Killarney, also called Cill Airne, serves as the bustling center of this gorgeous region. The town of Killarney itself is gracefully charming and the nearby Killarney National Park can’t be missed.
Like its namesake, this Killarney Road Riverfront Acreage is an idyllic place to call home. We can’t promise a pot of gold at the end of the rainbow, but we can promise vistas of golden pasture, amethyst river, emerald pines, and purple mountains. A rainbow of color!
Here are a few more of its amenities:
5+ Acres
(.71 Acre on the Coeur d’Alene River)
located near the Killarney Lake Boat Ramp & Dock
off Highway 3
Cedar-Sided 2 Bedroom Home
SHOP, Garden House & Guest Cabin
No need for the “Luck 0′ The Irish”
because this property is priced to sell…
And that’s NO BLARNEY!
Check it out at
www.RealEstate-Browser.com
or call
of Windermere Coeur d’Alene Realty
for more details.
208-660-0506
4 big money mistakes of first-time homebuyers
First-time homebuyers almost always make a few mistakes when buying their home. Perhaps they pay too much, choose the wrong type of mortgage or neglect to budget for needed home improvements.
Working with a trustworthy, experienced lender can help prevent such mistakes. But consumers also need to take responsibility for their budgets and choices.
“Before buying a home, consumers need to develop a short- and long-term perspective on their purchase,” says Michael Harrison, area director for MetLife Home Loans in Southwest Ohio.
Following are the four biggest financial mistakes of first-time homebuyers:
Spending the maximum on housing
“A lot of first-time buyers are optimistic about the future and excited about buying a home, so they borrow the absolute maximum they can afford instead of allowing themselves wiggle room for a partial loss of income or for future expenses such as children,” Harrison says.
Financial experts recommend that consumers decide how much they want to spend each month on housing before meeting with a lender.
“Every buyer should create their own budget and know their limits,” says Stephen Adamo, president of Weichert Financial Services in Morris Plains, N.J.
Adamo says many first-time homebuyers experience a sizable change in their housing payments. Some new owners may go from $500 per month in rent to a monthly mortgage payment of $2,000, he says.
“You need to deal with payment shock,” Adamo says.
Not getting prequalified early enough
Meeting with a lender for a buyer consultation and prequalification for a mortgage should be the first step toward homeownership. Yet many first-time homebuyers wait until they are ready to start house hunting before contacting a lender.
Misunderstanding the importance of a high credit score
While most consumers know it’s important to have a high credit score, not everyone understands how costly a low score can be.
“All mortgage lending is done with a tier of interest rates and terms based on consumer credit scores,” Harrison says. “A credit score of 720 or above will earn you the best rates and can potentially save you thousands of dollars.”
A score of 680 to 720 can get you good mortgage rates, while a FICO score of 620 is usually about the lowest score to qualify for most loans, Harrison says.
Consumers should learn about credit scores the minute they start working, Harrison says.
Websites such as Bankrate provide information about how to improve your credit score.
Even after a mortgage approval, consumers must avoid applying for new credit or taking on new debt, Adamo says, because a second credit check is often required before settlement.
Choosing the wrong mortgage product
First-time homebuyers today typically opt for a 30-year fixed-rate mortgage. Their conservatism is a reaction to stories about the dangers of interest-only mortgages and adjustable-rate mortgages.
But Harrison says home loan alternatives to a 30-year-fixed sometimes make more sense. For example, buyers certain they will be relocated by their companies within five years may find a 5/1 ARM “could be a much better mortgage,” he says.
“There’s no reason to pay a premium for a product you don’t need like a 30-year loan,” Harrison says.
Homebuyers eager to build equity in their homes or who are older and want to live mortgage-free in retirement should consider a 15-year fixed-rate loan or, if they can afford it, even a 10-year mortgage to reach their goals.
Read more: http://www.bankrate.com/finance/real-estate/4-big-money-mistakes-of-first-time-homebuyers-1.aspx
Presenting ‘The Bridger’ by Rosenberger Construction
The name “BRIDGER” calls forth images of rugged mountain peaks of Yellowstone or Montana, or of the great Jim Bridger, legendary Mountain Man of the Wild West.
Open living space, fresh air & rugged mountain peaks are what inspired Rosenberger Construction, the designers and builders of THE BRIDGER.
You and your guests will have room to gather in the spacious well-equipped Kitchen with Island, as well as in the open-air patio, serving as a popular gathering spot adjacent to the Great Room & Dining Areas for beautiful flexibility.
Spacious Master Suite with Walk-in Closet and 2 additional bedrooms, Low-maintenance Hardiplank Siding, finished 2 Car Garage & handsome Masonry Accents satisfy your needs for convenience and rugged beauty.
Enjoy Rathdrum Mountain views from many indoor & outdoor vantage points of your 4.6 Acre parcel. Selkirk Meadows is a new kind of neighborhood, dedicated to the twin ideals of environmental conservation and respect for neighbors.
Respect & appreciation for the Nature’s rugged Mountain Wild:
the essence of THE BRIDGER ideal.
Call Randy Oetken of Windermere Coeur d’Alene Realty to inquire about inhabiting your space in the woodlands at the foot of Rathdrum Mountain.
208-660-0518
Randy@RealEstate-Browser.com
Check it out at www.RealEstate-Browser.com
VIRTUAL TOUR: Selkirk Meadows Homes by Rosenberger Construction
Rosenberger Construction will build your Custom Estate in 2011.
Call Randy Oetken of Windermere Coeur d’Alene Realty to review floorplans for The Bridger, The Sequoia and The Madison.
208-660-0518
Randy@RealEstate-Browser.com
Take a Virtual Tour of Rathdrum’s Premier Neighborhood, Selkirk Meadows
Presenting ‘The Madison’ by Rosenberger Construction
If you decide to build, you want a home that reflects who you really are and the life that you really want to live.
THE MADISON, by Rosenberger Construction accommodates your lifestyle.
The social ‘you’ needs a home that helps you welcome your friends and family. With a spacious Kitchen, open-concept Great Room, Covered Front Porch and Covered Back Patio, this home is an hospitable space to receive your guests.
Also on the main level, the Office and Laundry room help minimize the hassles of the daily grind, like tele-commuting, bill-paying and doing laundry.
THE MADISON honors your need for solitude in the 2nd floor Master Suite. Additional 2 bedrooms & bath let you remain close to the ones who need you.
Low-maintenance Hardiplank Siding, finished 2 Car Garage & handsome Masonry Accents satisfy your needs for convenience and pride of ownership.
After all, your home is a reflection of you.
This 2155 sq ft classic will serve you in classic style for years to come.
Call Randy Oetken of Windermere Coeur d’Alene Realty
to inquire about this
3BR/2.5BA home
to be built on 4.8 acres
in incomparable Selkirk Meadows
208-660-0518
Check it out at www.RealEstate-Browser.com
Real estate: It’s time to buy again
Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.
Castleman is in a unique position to know. As the founder and CEO of a company called Metrostudy, he’s spent more than three decades tracking real-time data on the country’s inventory of new homes….
…Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That’s less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. “If we had anything like normal levels of buying, those houses would sell in 2½ months,” says Castleman. “We’d see an incredible shortage. And that’s where we’re heading.”
To see where real estate is truly headed, it’s critical to keep your eye firmly on the fundamentals that, over time, always determine the course of prices and construction. During the last decade’s historic run-up in prices, Fortune repeatedly warned that things were moving too fast. In a cover story titled “Is the Housing Boom Over?,” this writer’s analysis found that the basic forces that govern the market — the cost of owning vs. renting and the level of new construction — were in bubble territory. Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals — only now they’re pointing in the opposite direction.
So let’s state it simply and forcibly: Housing is back.
Excerpted from
Real estate: It’s time to buy again
Read the full article:
http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/
For more information on New Construction in North Idaho, visit Our Listings page.