Home Purchase Power at all time HIGH, Creates Huge opportunity for Home Buyers

BUY the Numbers - Joe Trovato  

Purchase Power at all time High Creates Home Buyer Opportunity!

Although it is deemed a “Sellers Market” we believe that right now is the greatest opportunity for Buyers.

Purchase Power is King in today's market.

Compare Purchase Power to just 5 years ago.

Mortgage interest rates in August of 2008 were 6.75% / 30 year fixed and 6.25% / 15 year fixed.

Today mortgage interest rates are still near historic lows and will not stay here forever.   The national avg. is 3.50%/ 30 year fixed and 2.95%/ 15 year fixed.

Beelow is an example of Mortgage Purchase Power

In 2008 if you took out a $250,000 mortgage for 30 years at 6.75% your monthly principal and Interest payment is $1,621.  In today’s low rate environment at 3.50% you could finance $360,000 for $1,617.  That’s a Purchasing Power increase of $110,000.00 = 31%.

The Purchasing Power is even more affective when applied to a 15 year fixed.

$250,000 loan for 15 years at 2.95% will cost you $1,720.per month. The savings is staggering and life changing. Let’s take a look

$1,720.00 X  180 Months (15 years) = $309,600 total payments.  In 2008 a 30 year fixed for $250,000. At 6.75% is $1,621 X 360 Months (30 years) = $583,738. 

The Same Loan cost $274,102 LESS than it did just 5 years ago and it will be paid off in half the Time. 

 Now that is Purchase Power.