Monday, May 18, 2009
Why Buy Now?
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As prices continue to fall, why are people suggesting buy now? Why not wait until the Reno/Sparks Nevada Real Estate Market has bottomed out? The simple answer is the interest rate. With buyer being able to get rates as low as 4 7/8, the monthly payment is lower.
House Cost $250,000
At 5% For 30 years = 1342.05 a month plus taxes and insurance.
Same House Cost $220,000 next year
At 6.5% For 30 years = $1,390.55 a month plus taxes and insurance.
The real question needs to be where do you think interest rates will be next year?
Interest rates will vary.
