The Ole South Blog

The Ole South Blog: “Do the Math!”

Categories: Interest Rates and Financial Information, New Homes for the First-Time Buyer, New Homes for those downsizing, Renting vs Buying, Time to Buy | Posted: October 3, 2011

If you don’t own a home right now,  and are paying rent,  it really is time to “do the math.”   Home ownership may not be right for everybody, especially if your parents are rich and have a lavishly furnished guest house, but it can be a very important component of your future financial health.

Here is a helpful calculator to help you “do the math,” courtesy of Ginnie Mae, aka Uncle Sam:   (Use these numbers for an approximate example … 3.75% interest rate, 30 Year term, and 3.5% minimum down=payment.  First time buyers may qualify for ZERO down, using a 4.55% interest rate.  Visit www.thda.org for details) 

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?section=YPTH

Even if you already own your home, the low fixed interest rates of today probably have you thinking about that next home, whether larger or smaller.  Go ahead and admit it.  After all, now really is a great time to buy that new home you have always wanted.  The perfect time may not be there for you down the road.  

There is another reason for now being the time to buy.  If you wait much longer, interest rates will more than likely be substanitally higher.  Those that took advantage of historically low rates will not be wanting to sell and give up their historically low interest rate for a higher one.   If  there is a home on the market that you like, and can afford, buy it….NOW.

Okay, so your existing home may not command the sale price it would have a few years back.  Neither is the new home you are wanting to buy.   Lose and save?  Gain and pay?  “Do the math.”   When doing that math, keep in mind that your house is your home first, and investment second.

Have Questions?  We have answers. 

Visit any www.OleSouth.com  new home neighborhoods in Nashville, Murfreesboro, Smyrna, Spring Hill, or Clarksville and explore all of your many options.  We take the stress out of buying a home.  Get your free stress-relief ball with every visit!

 

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