If you are a prospective homebuyer, and you are waiting for the bottom of the market to hit before buying, you may need to be fixated on a more critical issue–THE MORTGAGE RATE! A small increase in your mortgage rate, can have a dramatic increase in how much you are paying for your home, over the life of the mortgage. Recently, 30-year fixed mortage rates, with no points are around 5.625%, which is an excellent rate. For example, if you borrowed $300,000 at 5.625% (30-year fixed, 0 Points), your payment would be $1,727/month. If your interest rate was 6.00%, your payment would go up to $1,799/month, and you would be paying $25,806 more in interest over the term of the 30 year mortage. If your interest rate was 6.25%, your payment would go up to $1,847/month, and you would be paying $43,266 more in interest over the term of the 30 year mortgage (compared to a 5.625% interest rate). So, as you can see, if you are waiting for the price to drop $10,000 or $20,000 on a $300,000+ valued home, and the interest rate goes up a quarter or half a point, you will end up paying more in mortgage interest. Now, is a good time to buy Real Estate on Cape Cod while the prices are at the bottom and the mortgage rates are very low.
If you have any questions about this subject or anything else related to the Cape Cod Real Estate Market, please contact me. Please visit my website, www.SellingCapeCodRealEstate.com, for FREE Cape Cod MLS searching, recent sales, etc.
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