Financing

How Much is the Payment?

It’s a question I get asked a lot (like all the time, and understandably so).  However, it’s actually a more complicated question than most people think, because it involves loan calculations, property taxes, home owners insurance, maybe even flood insurance or HOA dues.  Payments are also affected by the type of financing (ie. FHA, VA, RD, Conventional, Contract or RTO) and the amount of the cash down payment.

But, there are some averages you can use to arrive at a “quick n’ dirty answer”.  Today I’ll give you what the AVERAGE payment looks like for a home bought on contract with a $5,000 cash down payment.  Here goes—

PRICE               PAYMENT

50,000             360

70,000             520

90,000             680

110,000           840

130,000           1000

150,000           1160

170,000           1320

190,000           1480

210,000           1640

230,000           1800

250,000           1960

Keep in mind that contract terms are always negotiable between the buyer and seller, and that can sometimes result in payments that are more or less than the averages I’ve listed here.  But, these average numbers should work for you when looking at houses and evaluating whether they’re in your pricing wheelhouse or not. K

Now, if you’d like to put together a strategy to get the best terms— then give me a call.

 “I work harder to make good things happen!!”
  -Bob

Mortgage Rates are Greaaaaat!

Actually, that’s an understatement.  Take a quick look at this graph and you’ll get the idea.

mortgage rates 2016

 

The average rate across the nation for a 30 year fixed rate mortgage is just 3.65%.  That makes for a $643 monthly loan payment on the median average house in central Indiana (assuming a 5% cash down payment).  Ten years ago the rate was 3% higher and the payment on the same priced house would’ve been $902.  Now that’s a huge savings!

Today’s low rates help both buyers and sellers.  Buyers can purchase more house at a low monthly cost, and that allows more sellers to sell their properties.

If you’d like a hand understanding how you can take advantage of today’s low mortgage rates— call me.

 “I work harder to make good things happen!!”
  -Bob

Non-Banks Making More Mortgages

Back in 2007, banks made 3 out of every 4 home mortgage.  As the financial crisis deepened, they became just about the only source for mortgage loans— that despite the fact their lending practices were at the root of the cause of the financial crisis.  Go figure?!

However, now the wor has turned.  Banks now account for just 1 out of every 2 mortgages, and we’re starting to see some of the big banks exit the mortgage biz altogether.  That’s fine with me.  Good riddance!  Historically, big banks have been the stingiest and least friendly lenders to work with.

Today, we’re seeing more and more credit unions and especially mortgage companies making loans so that people can buy hKouses.  I think that’s great news for consumers.  Mortgage companies are more consumer-oriented, more creative, willing to figure out ways to make more loans, and just downright friendlier and easier to work with.  I mean, what’s not to like?  Hopefully this trend continues.

If you have questions about mortgage financing, please be sure to ask.  I spent 17 years in those trenches and still have a strong network to call upon.  Talk soon, Bob