Thursday, October 6, 2011

Why NOW is The Time To Buy In Charlotte, NC

The age old question everyone asks when it comes to purchasing a home is: "Should I buy now or wait to see if the prices go lower?" Waiting sometimes leads to losing the house you may want. other times it works out and the seller lowers the price and you get the house at the price you want it at. But, in this market and economy should you want to buy a home or purchase a home NOW? I have toyed with this question daily. There is no real right or wrong answer. It comes down to how much of a gambling person you want to be. but there are other factors involved that can affect the purchase of a home...one of those factors is the mortgage interest rate. Currently interest rates for a FHA mortgage are hovering in the high 3%'s to low 4%'s. We have NEVER seen rates so low. They go any lower we will have no interest rate. however that will not happen because of pure economics. But what impact does the low interest rate have on the purchasing of a home over the price of a house? I had a mortgage broker run a scenario for me based on principal and interest only in the payment. (since taxes and insurance are variables that are fixed). if you are looking to purchase a $200,000 home right now with an interest rate of 4%; you would pay $954.00 a month in principal and interest. Now let's say on the same $200,000 home and the interest rates was 5% (still an incredibly low interest rate). You want your payment to remain the same as if the interest rate were 4%. In this scenario you would need an additional $22,000 down payment to remain at the same payment. In essence, one point in interest rate can affect your buying power by as much as $20,000 or more. So, you may wait for the house price to lower another $5000. but what if during that time the interest rate went up even a half point (not uncommon). You still would be short $7000 to keep the payment the same..... Looking at purchasing a home right NOW in Charlotte may be a wise investment and move. Your buying power is at all time high. The interest rates are at historic lows and prices have not climbed as economists had hoped. the interest rates will have to go up and even though the housing prices may not your affordability will be less. Dave diCecco Realtor/Broker www.davedicecco.com

Tuesday, October 4, 2011

Buying A Charlotte Home...Get A Home Warranty

When you purchase a home you are making the largest single purchase of your LIFE. the experience can be both exhilarating and frustrating at the same time. there are so many unknowns in buying a home. that is why people utilize local Realtors to help them with the purchase of a home. But there is one thing you can do to help protect your investment....Buy a Home Warranty. A home warranty is not like your insurance policy. this actually covers things that can and do break inside the house. The best analogy I always use is purchasing a car. You have insurance against accidents but a warranty against mechanical failure. A home warranty works in the same premise. I mentioned in an earlier post that sellers would be wise to offer a home warranty to buyers when they place their home on the market for sale. However; not all will do and not all can. For example, the bank will not give you a home warranty. they will give you a certain amount to your closing costs and if you have enough left after all the fees you can apply it to the home warranty. On a short sale the seller will not be able to offer a home warranty....They are walking away from the house for less than is owed on the house an the bank will generally not pay for the buyer to get a home warranty since they are already taking a loss on the house. But as a home buyer even if the bank, or seller will not pay for one...I advise everyone to get one. it is peace of mind. A home inspection will tell you what is wrong with the house. however; that is only valid on the day they looked at it. What happens if, say, 3 months after you move in something breaks? Now, you have just moved and closed on the house and probably bought some newer items and maybe paint...Do you have the money for the repair? Do you want to pay for the repair? A home warranty will cover you against those incidental things that can come up...With a small deductible (generally $50 or $60) you can have the peace of mind of knowing that it will be repaired. Considering they only cost around $400.00 a year it is a small investment for a large purchase. So, if you are buying a home and the bank will not give you a home warranty or the seller will not pay for one...purchase one. That minimal investment can save you thousands over the course of a year. Dave diCecco Realtor/Broker www.davedicecco.com