Since tax day has passed, I feel compelled to advise those of you who are getting a tax refund and do not own a home a piece of free advice. That refund (on average $3000) can help you get into a new home of your own. The payment will likely be less than your present rent if you get a home of comparable size. You may not even have to use your refund, but even so you will probably need new drapes a new grill and will have moving expense. You may not have to use it because in spite of what you have heard on the media, you might get into a home for little to no cash. I am reading everywhere that the housing recovery is here. That will most certainly drive interest rates up.
Here is a surprising statistic. The P and I on $150,000 at 3.75% (today’s FHA rate) is $696. If rates go up 1% which is a good probability that same payment will only finance $133,300.
So it doesn’t pay to wait to see if prices might drop some.
These payments are Principal and Interest only, not the total payment. Call me at 777-4663 for details or email me at george.margrave@migonline.com .
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