Sunday, August 5, 2012

Why You Can Buy a Home For 25% Less Than 1 Year Ago.

This home at 6506 Robin Road in Dallas resides on a 212'x200' lot.
Zoned for 10,000' lots and located across the street from Greenway Parks.
By Troy Corman,

Perhaps home builder confidence is at a 5-year high because home buyers can now buy a home at a 25% discount versus a year ago. Huh? What? How - you ask? 

Very simply, the cost of financing. Average 30-year mortgage rates on a FHA loan are around 3.54% versus 4.54% last year. According to bankrate, on a $200,000 30-year loan, you would pay $902.56 per month for financing versus $1,018.13 in 2011. If that's not enough to whet your appetite, just imagine the savings long term. Over the course of the full 30 years, your savings would total a cool $41,604! 

If you max out to the FHA single family loan limit in Texas ($271,000), your monthly mortgage payment this year would be around $1,222.97 versus $1,379.57 a year ago. Over the course of thirty years, you'd save over half a hundred (thousand), as Barry Switzer liked to say, $56,374. As homes for sale inventories shrink, and multiple offers are commonplace today on good homes in good neighborhoods, the housing bottom may be in the rear view mirror. Don't be one of those folks who looks back in a few years and says "coulda, woulda, shoulda".

Troy Corman is the founder of t2 Real Estate LLC, a Dallas real estate firm providing specialized knowledge with a hands-on approach. Specialties include residential real estate brokerage, land and acreage, and commercial real estate services. Contact us today at 214.827.1200 if you need to sell, buy or get your DFW property leased.