Just think about it—if you borrow $400,000 using a 30-year home loan at a 3.5% interest rate, your monthly payment is going to be about $1,796. This brings monthly mortgage payments to parity with rents.
Burlingame, CA (PRWEB) October 03, 2011
This past week, the 30-year fixed-rate mortgage rate dropped below 4% with a point (1%) fee. When calculated on the Wells Fargo website, a $400,000 loan qualified for a 30-year fixed interest rate of just 3.875%. Burlingame REALTOR Mary Ann Teixeira says refinancing higher interest loans is a no-brainer, but the decision to purchase a new home requires a more calculated risk/reward analysis.
Teixeira has talked to many buyers who are both hesitant and wary about their next move in this persistently unstable market. The big fear they express is over whether housing devaluations will continue. If they purchase a new home, they may suffer investment losses if home prices continue to slide.
The real answer, according to Teixeira, is simple and obvious: no one really knows what the future holds. But based on what is on the market now and the fact that buyers can lock up an incredibly low interest long-term loan now, prospective buyers should at least take a hard look, especially if they are currently renting.
“Just think about it—if you borrow $400,000 using a 30-year home loan at a 3.5% interest rate, your monthly payment is going to be about $1,796. This brings monthly mortgage payments to parity with rents,” said Teixeira.
“Renters in the Bay Area who have the financial means to buy should investigate this option if they are able to retain the property as their primary residence for at least five years. If they don’t buy, they will have contributed approximately $108,000 towards their landlord’s wealth over those five years. If they do buy, they will have grown equity in real property and enjoyed the benefits of lower taxes and homeownership.”
For additional information about low rates on 30-year fixed-rate mortgages, reasons to use a Bay Area real estate agent or San Francisco Bay Area Peninsula real estate and relocation, call Mary Ann Teixeira at (650) 241-0318, or visit her website at http://www.maryannt.com.
About Mary Ann Teixeira
Mary Ann Teixeira is a licensed REALTOR with McGuire Real Estate in Burlingame, California who specializes in relocation services, homes for sale and luxury homes. She is a seasoned buyer’s agent who serves the San Francisco Bay Area Peninsula communities of Atherton, Burlingame, Cupertino, Hillsborough, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, San Jose, San Mateo, Santa Clara and Woodside.