Archive for April, 2007
Should You Wait To Buy Property in Orange County?
To Schedule a showing for this property, please Click HerePosted: April 5th, 2007
Waiting to Buy?
What if Prices Go Down or Up?
Year of Purchase 2005 2007 2007
Change -10% +10%
Purchase Price $500,000 $450,000 $550,000
Down Payment 20% 20% 20%
Loan Amount $400,000 $360,000 $440,000
Interest Rate 5.5% 7.5% 7.5%
Monthly Payment (Princ. & Int.) 2271 2517 3076
30 Year Total Payments $817,560 $906,120 $1,107,360
If you are worried about prices falling, consider the strong probability that interest rates will increase from the current historic lows. A rate of 7.5% in two years is likely, which will more than wipe out any savings from a 10% drop in prices, which, in itself, is highly unlikely. Further, if prices go up by 10%, you lose both ways by waiting. Why wait!
Call today for a free market analysis of your current home or for an estimate of costs to buy the home you’ve always wanted. No obligation, of course.