Wednesday, October 29, 2014

Mortgage Rates & Purchase Price

Timing is everything in real estate. Since April 22, 2014, mortgage rates have steadily declined to its lowest level of the year.

April 22, 2014 Quote: 4.500% (30-year fixed)*
Current Quote: 4.000% (30-year fixed)*

* Rates depend on various factors (e.g. financing programs, credit scores, down payment, income/debt ratios, etc.). Rate information provided by Wisconsin Mortgage Corporation (http://wimort.com/).

Assume you're in the market to purchase a $200,000 home.

In April 2014, your mortgage payment (principal & interest only) would have been $810.70 per month (assuming a 30-year fixed-rate mortgage, 20% down payment).

Today, that same home would cost only $763.86 per month (same terms as above). A $46.83 savings per month!

Another way to look at rates?

For the same monthly payment of $810.70, you can afford a nicer home at a sales price of $212,250 (30-year fixed-rate mortgage, 20% down payment).

Unlike monthly rent payments, monthly mortgage payments will never change over the course of your mortgage term. Real estate taxes and homeowners insurance will change, but your monthly principal & interest is locked in for the life of your loan.

Don't think you'll live in your new home for 30 years? Seven-year ARMs are also available at 3.125% (per Wisconsin Mortgage; depending on credit scores, down payment, income/debt ratios, etc.).

Many analysts are projecting that rates will increase to 5.000% (30-year fixed) by the end of 2015.

Questions about mortgage rates or the real estate market in Metro Milwaukee? Feel free to leave a comment.


Disclaimer: All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. This is a personal weblog. The opinions expressed here represent my own and not those of my broker.

posted by David Ray @ 2:37 PM 1 comments

Thursday, October 02, 2014

Radon Gas: Should we be concerned about the air we breathe in the future?

Radon gas is a deadly gas found everywhere - but in higher concentrations below Earth's surface. People who spend a great deal of time in their basements should be concerned with the levels of radon in and around the foundation walls.

The real estate industry is aggressively tackling the issues regarding radon gas. In Wisconsin, our real estate purchase contracts were recently revised to pull the radon testing contingency out of the generic testing contingency into its own separate contingency. Home inspectors are offering radon testing services with their inspection (for an additional cost).

Home owners can install a radon mitigation system which will quickly emit radon gas from the drain tile to above the home's roof line. Basically, a radon mitigation system works similar to a smokestack. If every home has this smokestack, will the air we breathe in 20 years be more harmful outside than it is inside?

Ironically, the one area of your home that we are all concerned about today might be the safest place to live in the future.

Have any thoughts on this topic? Feel free to leave a comment.

Disclaimer: The author of this blog is neither an environmental specialist nor a healthcare professional. All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. This is a personal weblog. The opinions expressed here represent my own and not those of my broker.

posted by David Ray @ 7:55 AM 0 comments