Fred Chamberlin

MLO 271072 OR & WA

Retired Mortgage Advisor

Oak Harbor WA 98277

541-221-3455 cell

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Archive for the ‘Rent vs. Own’ Category

Rates head up, prices still down

I have been shouting it from the rooftops that it is time to buy a home since mortgage rates were at all time lows. Prices of homes were down and rates were low, an ideal situation and some people listened.

Others didn’t and are now paying a full percentage point more for a home today than they were last year. Let’s just take a closer look at what this cost and will cost in the future. I expect rates to continue up and prices will eventually do the same thing.

First of all, let’s assume you could purchase a nice home in a decent area a year ago for $170,000 and that over the past year it reduced in value to only 90% of what it was (personally, I think that is way to much of a reduction, but let’s err on the high side.) At the same time, let’s assume the interest rate was 4% and today’s is 5%, so what does this mean?

Using conventional financing with a 700+ credit score and 20% down, your principal and interest a year ago would have been $649.28 today it would be $657.07 or $8 a month and you lost a year of home ownership. This may not seem significant, but remember, I am using some assumptions on loss of value that I think are high and with the additional Fannie Mae overlays, the rate difference could be much higher at lower credit scores.

What am I trying to say? With everything I am hearing, rates are going to continue up. Take a look at this link to an article in the Washington Post today about the Administrations plans for the housing industry. We don’t know what the future will bring, but we do know what is happening right now.

HBUPennant Rates head up, prices still down

Check out the pennant above for a free webinar that is focused on things you need to know as a first time homebuyer. Also, if you take a look at my recent posts on rent vs. own, I think it really does make a lot of sense to buy now.

Contact me

Navigating the mortgage approval process doesn’t have to be daunting. With me on your side those hurtles can be overcome. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

button1 Rates head up, prices still down

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