Mortgage Rates Sink to Historic Low Level in Brooklyn (and anywhere else!)!
If you picked up today's New York Daily News (12/04/2009) and turned to page 62 you saw the article "Mortgage Rates Sink." The fact is that mortgage rates on a 30 year fixed loan as of today have dipped down to 4.71%. This is the lowest that mortgage rates have ever gone since finance giant Freddie Mac began tracking rates back in 1971! There was also an article about this in today's Chicago Tribune which you can read here:
This means that if qualified, you will be paying less than $520.00 for every $100,000 you borrow on a monthly basis. If you borrow $400,000 you would be paying only $2080.00. After you add in real estate taxes and homeowner's insurance you would still be spending less than $2,500.0 per month if you were to purchase a home in Brooklyn (based on average tax and insurance rates and a purchase price of $500,000 with 20% down). Combine that with the income tax write off you get when you purchase a home to be your primary residence and the end result is that it would cost you less to own a house than it would to rent!
In addition and as per my last blog entry (www.homegain.com/blogs/mitchellsfeldman-507663/Homebuyer-Tax-Credit-is-Coming-Back-to-Brooklyn-or-anywhere-else-Better--Stronger) as a first time buyer you can get a $8,000 tax credit if you get into contract by April 30, 2010 and close before July 1, 2010 (some restrictions apply, read my previous blog entry). Even if you’re an existing homeowner selling your primary residence and purchasing another property, you will get a $6,500.00 tax credit (again, some restrictions apply, see my previous blog entry for more details).
In my opinion the planets are aligned right now making it the perfect time to purchase. Home values have gone down over the past three years making today's prices very attractive and there are lots of homes to look at. Combining that with the fact that many buyers wait until the springtime to begin their home search opens up an opportunity for the buyers who are looking to have less competition. This puts the buyer in a stronger negotiating position.
NOW IS THE TIME TO BUY! Think about it... What are the chances that interest rates will stay low, prices will stay down, inventory to remain high and competition among buyers to be low AND the government offering you thousands of dollars to go out and buy a house? If you’re a betting man, it all adds up to BUY NOW!
Have an opinion or question, please submit them to this blog or contact me!
Associate Broker/Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/Cellular: (917) 805-0783
Web site: www.MitchellFeldman.com
© Copyright by Mitchell Feldman. All Rights Reserved. Republication or redistribution of this material is expressly prohibited without prior written consent by Mitchell Feldman. This information is deemed reliable but not 100% guaranteed. Mitchell Feldman is not at attorney and therefore not able to give legal advice. If you are involved in a real estate transaction and have a question, besides speaking to Mitchell, you should also speak to your attorney.