Don’t Buy Real Estate Prices, Buy Monthly Payments

September 10th, 2011

Don’t Buy Real Estate Prices, Buy Monthly Payments.

Hill St. For Sale in Steamboat Springs

Hill St. For Sale in Steamboat Springs

It’s often said that, “now is a great time to buy real estate in Steamboat Springs, Colorado.” Home prices are down from 30-50%, interests rates are at an all-time low around 4%, sellers are motivated, on and on. There might be more reasons to buy real estate than ever before. But just because these motivating facts about the aspects of real estate are true, this doesn’t mean that buying a home, town home or condo is right for everyone.

If you are thinking about buying real estate in Steamboat and you’re crunching numbers to see if it makes sense this graph below might help. All too often buyers get a number in their head of what they can afford. “I’m looking up to $200,000” or “We can afford a home between $400,000 and $500,000.”  Now these might be real numbers because you met with a lender yesterday. But these numbers can change on a daily basis depending on a few things – your income, your debt, and the interest rates.

This graph helps to show you that if you could afford monthly payment of $2,000, based on the interest rate, how much home you can afford.  Today with interest rates around 4% for 30 year fixed, if you can afford $2,000 a month, you can afford a $425,000 home. But if interests rates go to 5%, that same $2,000 payment will get you a home for $375,000. 6% goes down to $335,000. Search properties in Steamboat Springs.

Mortgage payments on real estate

Mortgage payments on real estate

—For more information on buying real estate or questions regarding Steamboat Springs real estate or renting a home in Steamboat Springs, Colorado, feel free to call Charlie at 970-846-6435 or write me an email at: charlie@steamboatsmyhome.com.  Or join me on Activerain at: http://activerain.com/blogs/charliedresen

Thanks,

Charlie

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