Florida homebuyers may miss the boat, when it come to making a decision on purchasing Florida real estate. Prices are low and there is plenty of Florida inventory to choose from, BUT let’s not forget about the interest rates. Florida homes are more affordable today than at any time in recorded history, but it’s not because home prices are down. It’s because mortgage rates are.
Nobody can predict the future and you have to make that decision, whether you want to buy that Florida home now or wait a little longer yourself. Also you should look into USDA LOANS you may qualify for.
Here are the following example:
If you have 20 percent to put down on a 300,000 home, today, you can borrow at 4.500% and pay $1,216 monthly.
If you want to wait for a price reduction and, 3 month later, get it — all the way to $285,000. You’ll be ecstatic…..until you talk to a lender to find out mortgage rates are up at 5.5 %.
That same home — selling for $15,000 less —
now costs $1,295 to carry. It’s a $79 monthly increase, and $28,440 in extra payments over the life of the loan.
Sure you get a great price, SHOULD the real estate market decrease, but rising mortgage rates mean higher monthly mortgage payments.