If you’ve been following the local real estate news you know that the inventory of homes for sale is at an all time low, especially for new homes. At the same time mortgage interest rates are still at historic lows. When my parents bought their home in 1966 their interest rate was 6% fixed. In 1989 when I bought my first home my rate was 11%. Experienced realtors were ecstatic years later when rates dropped into the 7-8% range.
Why is the interest rate important? Because home prices, in a normal market are based on the cost of the land plus the cost to build. These costs go up or down over time but modestly. Conversely, mortgage interest rates can fluctuate wildly within a short time frame; 6% in 1966, 18% in 1980, 11% in 1989, 8% in 1995 and about 4.5% today. Because most people finance their homes for 30 years, the interest rate they pay has a far greater impact on the final cost of the home than the purchase price. Today, rates are only 1% higher than the 3.5% earlier this year, the lowest rate in 50 years. And everyone in the industry agrees that they have nowhere to go but up. If you’ve ever considered buying a new home, now is the time to do it. Home prices in Atlanta are rising, but they are still bargain.
Hereas an example: Purchase price $400,000 with 20% down, $320,000 financed.
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4.5% ($5.07 per thousand financed) Principle & Interest 1622.40 X 360 months (30 yrs) $584,064 |
5.5% ($5.68 per thousand) Principle & Interest $1817.60 X 360 months $654,336 |
The difference: $70,272 over the life of the loan!
In reality most people sell the home before 30 years or they pay it off early. But the point is why pay $70,000 or $50,000 or even $20,000 more than you have to? That money could be used to buy a car, college tuition or more. If youare not in a position to buy due to finances or an employment situation, thatas understandable. If youare waiting for your home value to go up before selling, remember that new homes will be going up as well. It would be better to sell low, buy low and take advantage of the current interest rates than sell high, buy high and get a much higher rate. If you are in a position to make the move but are hesitating, the big question is why? Donat look back a year from now regretting you didnat take advantage of this great opportunity.
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Chafin Builders at Summer Haven offers you the opportunity to take advantage of low prices and low interest rates today. Summer Haven is an exclusive community of only 77 homes in desirable north Gwinnett County. The schools, Ivy Creek Elementary, Glenn C. Jones Middle and Mill Creek High are top rated. Shopping, restaurants, Lake Lanier and recreational activities are nearby.
We offer two beautiful new homes ready for you to enjoy; 4778 Moon Hollow Court with 5 bedrooms, 4 baths, three car garage and basement for $420, 942 and 2640 Moon Chase Lane with 5 bedrooms, 4 baths, three car garage and second floor bonus room for $375,903. Both of these homes are loaded with upgrades; hardwood floors, huge kitchens with custom cabinetry, upgraded trim package, stone fireplaces and more. And Chafin homes come with the 2-10 Home Buyers Warranty for your peace of mind. Come see these fantastic homes for yourself. Opportunity knocks! Are you going to answer?
Summer Haven is located on Thompson Mill Road just east of Sardis Church Road. For more information contact Paul Walker at paulwalker@tamrawadeandpartners.com or 404-395-1354. You may also visit us on our website at tamrawadeandpartners.com.
Always looking forward to a new day at Tamra Wade & Partners! That is how I like to take on every day of my job. My name is Kelly Peterson. I handle many hats here at Tamra Wade & Partners, but in a nutshell, I am the Contracts & Closings Coordinator, plus Licensed Realtor. My overall favorite aspect of both positions with TWP is that every day and every situation is different. Whether it...
Maplecliff, built by Chafin Communities and located in Sugar Hill offers convenience, style and quality in homes starting in the 160as into the low 200as. Located on Peachtree Industrial Blvd. just off Hwy. 20, this community is only minutes from I-985, Mall of Georgia and Lake Lanier Islands. The homes in Maplecliff come standard with granite kitchen counter tops and tile backslash, stainless steel appliances. Hardwood flooring in the kitchen and breakfast area and...
