West Chester & Liberty Township Ohio Real Estate: Interest Rate Update

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30 year fixed rate mortgages continue to be the bargain of a lifetime.  Rates today (April 4, 2009) are at 4.99% with no points.  When you combine these low rates with the low housing prices that we are currently experiencing in West Chester, Beckett Ridge and Liberty Township, what you get is an incredible opportunity.  How long it lasts is anyone’s guess.  Here are some example payments based on some different interest rates.  You can see the tremendous impact these low rates have on a monthly payment.

On a $200,000 loan:

A 6.50% interest rate = $1264.14 monthly payment of principal and interest

A 6.00% interest rate = $1199.11 monthly payment of principal and interest

A 5.50% interest rate = $1135.58 monthly payment of principal and interest

A 5.00% interest rate = $1073.64 monthly payment of principal and interest

And if you want to wait and see if the rates will drop even farther and risk missing out on the 5.00% rate:

A 4.75% interest rate = $1043.30 monthly payment of principal and interest

This last example of course is only valid if rates ever dropped to 4.75%.  You would save an additional $30 per month, but you risk waiting and missing out on the lowest rates we have seen in decades should rates begin to inch back up as they most certainly will at some point.

And of course, if you are a First Time Homebuyer you can get the $8000 Tax Credit by buying a home.

This is a lot of numbers.  If you have any questions, please call or email.

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West Chester OH Real Estate: Why Buy A Home Now?

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Why Buy a Home Now??

If you’re renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, “The average homeowner is worth 35 times more than the average renter.”

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they’re only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into home ownership. If the market conditions have scared you, perhaps you’re not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.

According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. “People can get a lot of what they need and almost all of what they want today,” said Jay Papasan, one of the authors of “Your First Home”.

The historically low interest rates that we are currently enjoying make buying a home especially compelling roght now.  A 30 year fixed rate mortgage is 4.90% with no points as of today!

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors’ housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider…

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West Chester, Ohio Real Estate: New Listing In Beckett Ridge!

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My Newest Listing…

 

8185 Pepperwood Drive, West Chester, Ohio 45069

West Chester, Ohio 45069

Lakota Schools

$165,000  – Three Bedrooms – One Full Bath, One Half Bath

This is a terrific two story home in West Chester, Ohio:

  • Perfect for the 1st time homebuyer! 
  • Private wooded lot
  • Located minutes from the Beckett Ridge Country Club 
  • Laminate Floors
  • Vaulted Great Room w/ Wood Burning Fireplace
  • Eat-In Kitchen
  • Formal Dining Room
  • First Floor Laundry 
  • New Carpet
  • Finished Lower Level Rec Room
  • Two Car Garage
  • Close To Schools, Shopping, Dining & Expressways!

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

West Chester OH Real Estate: Stimulus Plan Contains Tax Credit For Housing

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There has been plenty of coverage regarding the economic stimulus package and all of the pros and cons of it.  The most significant part of the plan as it currently stands and that matters here on RealEstate-Ink is the proposed tax credit for homebuyers.

The Senate has passed an expansion of the original tax credit proposal.   The proposal would be available to all purchasers (not just first-time homebuyers).  The key elements are:·   A tax credit in the amount of $15,000 or 10 percent of the purchase price (whichever is less), with the option to utilize the credit all in one year or spread it out over two years
·   The tax credit is available to all purchases of any home from date of enactment for one full year.
·   Able to claim the credit against the 2008 tax return
·   Buyers must occupy the homes for two years as their principal residences
·   Purchases of homes by investors are ineligible
·   Terminates the previous $7,500 Housing Tax credit on the date of enactment
 

 

Keep in mind that this has not been passed into law and is subject to change at any second…remember this is Washington, D.C. and Congress we are talking about.

Below is some further detail on the current proposal:

Senate Unanimously Approves Isakson Amendment to Stimulate Housing Market
Homebuyer Tax Credit Revived Market in 1975 and Would Work Today

WASHINGTON – The U.S. Senate today unanimously approved an amendment by U.S. Senator Johnny Isakson, R-Ga., to stimulate the nation’s declining housing market by offering a $15,000 tax credit to individuals who purchase a home in the next year.

“It is time to fix America’s problem, not throw money at the symptoms. It is time to fix housing first. It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history and repeated a method that worked by adopting this amendment.”

Specifically, Isakson’s amendment to the pending economic stimulus bill would provide a direct tax credit to any homebuyer who purchases any home. The amount of the tax credit would be $15,000 or 10 percent of the purchase price, whichever is less. Purchases must be made within one year of the legislation’s enactment, and the tax credit would not have to be repaid.

The amendment would allow taxpayers to claim the credit on their 2008 income tax return. It also seeks to prevent misuse by only allowing purchases of a principle residence and by recapturing the credit if the home is sold within two years of purchase. The amendment would sunset the current $7,500 housing tax credit on the date of enactment.

Isakson has pushed hard for a non-repayable tax credit for homebuyers because he knows that it will work. In the mid-1970s, America faced a similar housing crisis when a period of easy credit and loose underwriting flooded the market with new construction.  Interest rates rose, the economy slowed and America was left with a three-year supply of vacant homes. Congress responded by passing a $2,000 tax credit for anyone purchasing a new home for their principal residence. Isakson believes the results were clear and swift as home values stabilized, housing inventory dropped and the market recovered.

Last year, Isakson introduced legislation to specifically target those homes that were causing the unprecedented increase in housing inventory by offering tax credits to individuals purchasing a foreclosed home or a home where foreclosure is pending. In April 2008, the Senate passed legislation to stimulate the nation’s declining housing market that included Isakson’s proposal. However, the final version of the legislation that was signed into law included only a $7,500 tax credit for first-time homebuyers that must be repaid over a 15-year period. Isakson’s amendment that passed today would sunset that $7,500 tax credit.

Isakson spent more than three decades in the real estate business, beginning his business career in 1967 when he opened the first Cobb County, Ga., office of a small, family-owned real estate business, Northside Realty. Isakson later served as president of Northside for 20 years, presiding over the company’s growth into the largest independent residential real estate brokerage company in the Southeast and one of the largest in America.

Isakson has not made a decision regarding his vote on the overall economic stimulus legislation.

Wondering about the value of your home in today’s market?  Request a Free Market Analysis.

If you think now is the time to begin your search for a new home, start by checking out my Feature homes for sale and then search the MLS, all on my website:  www.LowryTeam.com

Check Out My Feature Homes For Sale In West Chester and Liberty Township, Ohio

It’s A Great Time To Buy A Home In West Chester And Liberty Township, Ohio

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It really is a great time to buy a home.  Why??

Here are 6 reasons why now is the time to buy a new home in our area:

1.)  There is a great inventory of homes for sale right now – the selection is fantastic.  There are many great opportunities.  You can search homes for sale on my website:  Search homes for sale in West Chester and Liberty Township.

2.)  Interest rates are terrific right now.  As of today (10/23/08) a thirty year fixed rate mortgage is 5.80% with no points.   How low is this?  Consider that 18 months ago the rate was 6.49% with no points.  Keep in mind though, rates will not stay this low forever.

3.)  Owning a home is one of the best ways to build wealth.  When you are buying a home you are building equity and adding to your assets.

4.)  Tax breaks.  Owning a home provides great tax benefits including deductible items such as mortgage interest (both on your first and second), PMI or private mortgage insurance, and real estate property taxes.  Be sure to check with your tax professional.

5.)  If you are a first time home buyer you can take advantage of the first time homebuyer tax credit.  You can read more regarding this terrific opportunity in this recent post on my blog.  First time home buyer credit for West Chester and Liberty Township homebuyers

6.)  You can’t time the market.  You will never know when home prices have hit bottom until sales and prices have begun to increase. Buying a home now ensures a good price and good rate AND a piece of the market before our next major upturn. It is a buyer’s market now.

Are you a first time home buyer looking for more information on buying a home?  I am happy to help!

Are you a current homeowner thinking of moving up to a larger or newer home?  Email me for more information on our Guaranteed Sale Program.

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FHA Loan Limits, Interest Rates Impact West Chester Ohio Real Estate

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FHA loan limits are moving higher as part of the Economic Stimulus package that President Bush signed into law this past week.  Why should this matter and how will it impact the West Chester and Liberty Township, Ohio real estate market?  Great question!

1.)  The higher loan limits when they are published by HUD will allow a significantly higher number of buyers to qualify for an FHA loan, which has less stringent qualifying criteria and lower down payment requirements. 

2.) This change in the loan limits may open up some additional avenues for buyers to obtain financing, which will certainly impact our West Chester and Liberty Township real estate market.  Many borrowers, in particular first time home buyers, have felt that they may not be able to get a mortgage loan due to all of the recent news and talk about the sub prime mortgage mess.

The National Association Of Realtors has developed an “estimated” amount of the new loans.  These are only estimates at this time.  HUD has 30 days to publish the new loan limits.  The estimated FHA loan limit for West Chester and Liberty Township, Ohio are $337,500, which is a significant increase from the old limit of $256,500.

Interest rates have moved higher in the last couple of weeks.  Just three weeks ago a 30 fixed rate loan was 5.49% with no points and as of Friday it was now 5.80% with no points.  Ouch!  Will the rates go lower again?  It is so hard to say if rates will go up or if they will go down and if someone tells you they do know the answer, proceed with caution.  My sense is that we are in a range for rates that we will probably stay in for a while.  With rates moving slightly lower and then back up slightly higher.  There is no doubt in my mind though, at some point, there will be people saying they wished they hadn’t waited so long and missed out on the opportunity to get a 5.5% or so interest rate.

Your comments and thoughts are always welcome!