New Community Website Content

Coldwell Banker Riviera Realty is creating new Community Pages on it's website.  The content is designed to provide consumers with content about communities they may live in or are considering buting a home in. 

Take a look at the beta page. 

Is Now A Great Time To Buy A House?

I recently read a quote attributed to Donald Trump.  He said "I'm pretty sure this is a great time to go out and buy a house.  And if you do, in ten years you're going to look back and say, You know, I'm glad I listened to Donald Trump." 

Sure prices could continue to drop.  However interest rates may continue to rise.  The result of dropping house values and rising interest rates is that  a house could be worth less but cost more. 

The monthly payment (Principal and Interest) on a loan of $225,000 with an interest rate of 4.7% is $1166.94.  Should the interest rate climb a mere 3/4 of a point to 5.45% the monthly payment on that same $225,000 jumps to $1164.94.  That is a $103.54 per month increase in the monthly payment.  Don't pull out your calculator, the increase is just short of a 9% more per month.

If the maximum monthly mortgage payment a buyer qualifies for is $1164.00, and the mortgage rate increases from 4.7% to 5.45% they will now only qualify to borrow $206,000. 

The point should be clear.  Interest rates have a high impact on the cost of a home.  With the above example, you would pay over $12,400 more over the course of ten years. 

I am betting that home values will be far higher in ten years, so will interest rates.  

Is now a great time to buy a home?  Yes.  To see all the homes for sale in two multiple listing services in Ocean and Monmouth Counties, visit www.riviierarealty.com.

Jim Joeriman

General Manager

Coldwell Banker Riviera Realty, Inc.

Mailto: GM@RivieraRealty.com