The Case For Not Waiting

February 29, 2008 at 2:31 pm Leave a comment


Originally uploaded by thenelsonproject

Even if house prices drop some in your neighborhood, your payment may not.

Interest rates have increased by 0.6 percentage points in 5 weeks:
January 24, 2008: 5.48%
February 21, 2008: 6.04%

Scenario 1:
Prices decrease by 5% and interest rates increase by 0.5%

Scenario 2:
Prices decrease by 10% and interest rates increase by 1.0% 

Scenario 1 Scenario 2
Price -5% Price -10%
Today Int Rate +0.5% Int Rate +1.0%
Home Price $218,900 $207,955 $197,101
Interest Rates 6.04% 6.54% 7.04%
Your Pymt $1,054 $1,056 $1,053

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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Entry filed under: Smart Buyers, Smart Real Estate. Tags: , , , , .

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© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2016-2020. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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