The Mortgage Blog

Still unsure if you should be buying a home? Maybe this will push you over the edge. Lets assume your renting for $950.00 plus utilities. Now lets take a mid range priced home at $125,000 with $4,000 in real estate taxes. As of this writing, assuming your credit score is above 640 and rates remain at this level (4.437 APR) this is how your payment will shake out.

FHA Financing:        $125,000
                            -   4,375 down payment
                            ________
                            $120,625
                            +   1,206 financed mortgage insurance
                            ________
                            $121,831 Loan Amount

Principle and Interest:  $599.34
Monthly Taxes:           $333.33
Hazard Insurance:       $  40.00
Monthly mtg ins:         $115.60
                                ______
Total Housing Payment:$1,088.27

Only $138.27 more than your rent!! This is not even taking into consideration your tax savings. Now go back just a few years when rates were hovering around 7% and your talking about another $211.00 dollars more a month using the same example.  WHAT ARE YOU WAITING FOR?? Worried about your job? Well you still need shelter, can't live with mom and dad your entire life. I know you can't beat the food but aren't your feet starting to fall off the bed you had when you were ten?  All jokes aside, don't let this rate environment get away from you.  It won't be here for ever. Get pre-approved now!

At CenterPointe Mortgage pre-approvals are always fast, easy and free. 

John Milano
CenterPointe Mortgage

Email me at john@centerpointemortgage.com