Just wanted to take a moment to remind readers that you can find additional mortgage advice at mortgageadviceforums.com
I’m not paid or anything to advertise for them. I personally think it’s a great place to get genuine mortgage advice. Bruce Brown is always fast to answer everyone’s questions. I’m a registered member as well and I try to take the time to help with questions and advice.
I have built a new page tab called “Mortgage News” at the top of this blog. I will continue to post mortgage news that’s important and entertaining for those who like to read about these things. Click here to go directly to the Mortgage News page.
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Builder confidence in the market for newly built, single-family homes rose one point in August to its highest level in more than a year, according to the latest reading of the National Association of Home Builders Housing Market Index (HMI), released today.
A reality check perhaps? This chart shows the trend of the 30 year fixed interest rate for the last 37 years. Let’s say it’s the 1980’s and you are looking for a home. You give me a call about getting yourself pre-approved for a new home loan and I share with you how the rates are currently doing.
18% for a 30 year fixed rate? With 20% as a down payment on a $200,000 sales price, that’s a mortgage payment of $2411.34. That’s just the principal and interest payment.
Now, the current 30 year fixed rate is about 6.0%. With a 20% down payment on a $200,000 sales price, that’s a mortgage payment of $959.28! That’s a difference of 1452.08 every month!
Here an even better way to look at it. Let’s assume the first mortgage payment of $2411.34 was affordable for you. That same payment with today’s interest rates will buy you a home in the price range of $500,000! Yes, that’s half a million dollar home!
Now, perhaps a half a million dollar home is too much, (it would be too much for me at the moment) but you can see how today’s mortgage rates are still at a historical low.
“Middle-America cities that performed evenly over the past few years – like Cincinnati, Milwaukee and the Kansas City, Mo., area – are likely to experience home price gains in the 20 to 30 percent range over the next five years, while markets like Miami, Las Vegas and Phoenix could see prices go up as much as 50 percent during that time period, Yun said.”
I found this article on First Weber’s Wisconsin Real Estate Blog. It was initially posted on Realtor.org.
This is positive news for Milwaukee, along with other Midwest cities. The fact that we are finding positive news about the real estate market is great to hear. With so much negativity in the media about real estate, its no wonder why people are so hesitant to buy is such a great market as a buyer.
Hopefully, you enjoy the article and find some confidence in yourself if you are looking to buy or already a homeowner and like to hear your home value may being increasing soon.
Below is the link to an article I recently read about home sales in the month of April.
Finally, some good news, since all everyone has been reading or hearing is negative things about the real estate market.
If you have positive information about the real estate market or mortgage financing, feel free to comment or let me know. I’d be happy to post other positive news to keep this going!
Who said the news is always negative…