I have clients from time to time who get very worried about an interest rate difference of .01%, 5.45% vs. 5.40%. Sure, it can make a big difference on a 30 year loan, if you stay there for 30 years. But putting it all in perspective, is that difference worth not buying the house that you want right now and then going back on the market for a house that may cost more, or for which the interest rate will have gone up by more than that same .01%?
Those fears of “getting a bad” deal over .01% get put in to perspective when you look at the buying power that we have now versus 2003 or 2006.
Have a look at the chart below. For about $1,060 (P&I only), you got a $201,715 house in 2003. You got only a $195,331 house in 2008. But today, you got a $246,648 house.
So, right now –as in this summer– we have a lot of houses listed higher than they should be, a lot of buyers who are sitting on the fence and incredibly low financing.
You get my drift here. If you are thinking of buying a house, now is the time. Call me at 602-456-9388.