The following illustrates this point:
Using this same scenario, buyers purchasing a $400,000 home using an FHA loan have close to $18,000 more purchasing power. In other words, for the same monthly payment, today’s buyer could purchase a home worth $18,000 more than they could have on May 1, 2010.
Make sure you look at this Rent vs Own Blog that CLEARLY and HONESTLY shows that buying a home today is equally or more beneficial than buying with only a $8,000 tax credit incentive.
Who knows how long interest rates will remain this low, but for those looking to buy a home in the near future, this increase in purchase power could be their golden ticket. For specific guidelines and tips for getting even a sweeter deal while either purchasing or selling a home, reference the blog I wrote on Strategic Financing Using A Seller Interest Rate Buy Down.
Lastly, here is a good article that recently ran in the Wall Street Journal about the dip in interest rates and what it means for homebuyers and the U.S. economy: Home Buyers Get Surprise Boost From Europe Crisis as Loans Drop to Below 5%
These are a couple of very important facts and stats to present to your buyers and sellers… for more information, please contact me directly at (425) 350-7136 or email@example.com
Dedicated to Your Success,
a special thanks to Lennox Scott for providing the insight and information to this blog entry