Boise Real Estate Market

Recently I told you the many reasons it is a great time to be a buyer: low-interest rates (4%, 30 year fixed) and historically low prices. I also showed in that post the great deals available in the $150k and under price range. What I want to show you know is what you will be able to afford if the rates go back up to 5 or even 6 percent.

Here is what the 4% interest rate looks like on a home that costs $150K:

$150k @ 4% interest -10% down = $135k loan =$800.76  a month

$150k @ 4% interest-3.5% down = $144,750 loan = $847.31 a month

If the interest rates go up to 5 percent, the home that you could afford goes down to$135k  in order to get that same monthly payment:

$135k @ 5% interest – 10% down = $121,500 loan= $792.86 a month

$135k @ 5% interest -3.5% down = $130,275 loan = $839.97 a month

And if the interest rate goes up to 6 percent , the home that you could afford goes down to $125k in order to get the same monthly paymentas the ones above:

$125k @ 6% interest -10 % down =112,500 loan = $804.70 a month

$125k @ 6% interest -3.5% down = $120,625 loan =$853.42 a month

As you can see, buying now at the 4 percent interest rate will get you a home worth $25k more than if you wait until rates go up to 6 percent. Many think that 2 percentage points is not a big deal but when you are out looking at homes, the $150k home is much more likely to have the “wants” on your list. So why settle for just the “needs” on your list?!! Now is great time to be a buyer (yes, I know I say that at nauseam!)! So if you would like to know how to get started in the home buying process, please send me an e-mail: mary@BoiseRealEstateChick.com or go to my web site and see what homes are available in your price range: www.BoiseRealEstateChick.com (no sign in required)