Underwater But Want To Buy A New Home?

Underwater But Want To Buy A New Home?

Underwater but want to buy a new home? So you bought a house in 2006, it lost 20-40 % of its value....but, today you could break even, hopefully......you want to buy a new home, but don't really have any equity, what should you do?  You're not too confident in the housing market, but you know rates are great?? The real question should be......What would you pay today to put income in your pocket and a roof over your head for the rest of your life?

Today you have a once in a lifetime opportunity to buy a new home, keep your old house and own them both in 15 years! What would your life look like if you owned two homes in 15 years? You could use the income from one to live in the other, have a roof over your head for life and have a retirement income! Act now....this opportunity will go away within 1-2 years max.

Interest Rates are going up! We have been at a 100 year low and you won't be able to create wealth like this ever again in your lifetime!

That's right, when rates are back to 6.5-7 % you will not qualify to keep your old house and buy another and you might be lucky to even buy one home on a 30 year mortgage! let alone a 15 year mortgage.

The choice is yours....Option One:
Stay put...be conservative wait to see what is going to happen with the market. Keep your "old" house, hunker down....wait and see if rates really will go up?

The smart choice...Option Two:
You purchased your existing house in 2006, paid $255,000 it went up, then down, then down some more, now it is back up to a little less than you owe. Why sell?......keep it, rent it for the monthly payment....at 5.5% your payment is $1636 and fair market rent should be at least that. Pay $600 a month extra in addition to rent and you own it in 15 years!

Your new home is $300,000. Instead of doing a 30 year mortgage at 4.25 with a payment of $2026, do a 15 year loan at 3.5% and pay an extra $695 per month!

Recap......for $2,600 more per month over 15 years, you can own both houses, get income of $2,000 per month for the rest of your life and own your home free and clear.....with the leverage of reverse mortgages, you could have $4,000-$5,000 per month with no house payment for the next 15-20 years!

If you have been wrestling with yourself, your spouse, your parents or relatives...
BUY NOW!  and you will forever be a genius.

For more information on buying a new home, contact The Mary Ellen Vanaken Team 678.866.1935 or to search for the home that is just right for you click here.

Underwater but want to buy a new home?

Mortgage Rates Hit 2014 Low

Mortgage Rates Hit 2014 Low

Mortgage Rates Hit 2014 Low - The Mary Ellen Vanaken Team 

At the start of 2014, there was a lot of speculation that mortgage rates would rise to unaffordable levels, with many expecting to see 30-year fixed mortgage rates exceed 5%. However, luckily for homebuyers, mortgage rates have stayed historically low, with a 30-year fixed-rate mortgage recently hitting its lowest point all year, according to the latest Primary Mortgage Market Survey from Freddie Mac.

Here's what the data showed for the week ending Aug. 21:
 
A 30-year fixed-rate mortgage hit 4.10%, down from 4.12% a week before and 4.58% this time last year.

A 15-year fixed-rate mortgage hit 3.23%, falling from 3.24% on a week-over-week comparison and 3.60% a year prior.

A 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.95%, marking a decrease from 2.97% a week ago and 3.21% on a year-over-year comparison.

"Mortgage rates were down slightly this week, following the decline in 10-year Treasury yields," said Frank Nothaft, vice president and chief economist at Freddie Mac. "Meanwhile, housing starts in July jumped 15.7% to 1.093 million units after falling 4.0% a month earlier. Also, July's consumer prices increased at a 0.1% seasonally adjusted pace, the slowest in five months.

Renting unaffordable in major cities. A separate report from Zillow, a real estate marketplace, recently highlighted that it's more affordable to purchase a home in 94 of the 100 largest metropolitan areas in the country rather than rent, primarily because mortgage rates remain so low.

"The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates," said Zillow Chief Economist Stan Humphries. "But the health of the for-sale market is directly tied to the rental market, where affordability is really suffering."

The report noted that historically low interest rates and continually increasing rent prices have made buying more attractive. HousingWire reported that at the end of the second quarter, homeowners only had to put 15% of their income toward a mortgage, well below 22.1% prior to the housing collapse.

Humphries noted that even if mortgage rates were to hit 5%, they would still be affordable by historical standards. He said this would cause only 13 of the largest metros to become unaffordable for buying (just six metros are currently unaffordable).

As mortgage rates remain low and rents continue to increase, more Americans will be assessing their residential mortgage options.

For more information on mortgage rates and lending contact us today:

The Mary Ellen Vanaken Team

678.866.1935

5780 Windward Parkway

Suite 100

Alpharetta, GA 30005