Well believe it or not 2012 is over half way in the books! I hope your summer has been fun as we have a few more months of hot days here inSouth Alabama. I am still amazed at how incredibly low interest rates are right now. I saw a rate sheet this week that showed the 30 year fixed at 3.25% for conventional and FHA. These low rates afford much more buying power for a consumer. For an example lets look at the average purchase price of $150,000 for our market (this number is based on all markets over a twelve month period). If a buyer locks in at 3.25% the principle and interest payment would be $652 per month. In comparison to a 5% rate the principle and interest payment would be $802…a savings of over $150 per month. You can hardly rent for that type of payment. The above numbers do not include taxes and insurance which would typically add around $100 per month to this example no matter the interest rate.
If you are not thinking of a purchase at this time you still need to consider a refinance of your mortgage. I have folks weekly ask me about this option. There are so many options now that you need to consider no matter your circumstance or rate. If you have an FHA loan you can do a streamline FHA refi with no appraisal! If you have NO equity in your home you may be eligible for a HARP refi and again not need an appraisal. If you plan to be in your home for at least two more years and you have a rate of over 4.5% you would save money…now’s the time to make some decision. Feel free to call or email me if you need some contacts for great lenders.
The latest stats for home sales in Auburn/Opelika have been posted here. Two stats jumped off the page to me. The number of properties on the market is down which is good. Second, the average sales price is up which is also good. While the actual number of units sold is down as compared to a year ago this number is not a concern as the overall pattern of sales is steady. So whether you are considering a refi, looking to buy or sell feel free to contact me to help with all your real estate needs!