This chart shows what your Principal and Interest Payment (PI) would be on a home or lot in Austin TX at various interest rates. For instance, if you were to buy a $200,000 property on a 30 year fixed rate loan at 5% the PI would be $1074. But, if you wait until interest goes up to 6% your payment would be $1199. That’s $125 more per month in a mortgage payment! That’s huge! So, if you’re a first time home buyer in Austin or someone wanting to relocate to Austin, you need to get your home search into turbo mode.
But, in reality, if you are approved for a $1074 payment based on a $200,000 purchase price at 5% interest, and you wait several months before purchasing at which time the interest rate has increased to 6%, you can no longer qualify for the $200,000 property. Your buying power has been reduced to approximately $175,000. In essence, that’s lost equity you would have had if you had purchased your property at $200,000.
So, don’t delay whether you are a first time home buyer, looking to sell your home in Austin and move up, relocating to Austin, or interested in foreclosure homes in Austin for sale. It is a Buyers’ Market in the Austin area and interest rates are going up. Call me at 512/964-7653 or 512/280-2665 to get started!
Jana McCool, REALTOR, ABR, CDPE, CHMS, CRS, TAHS with RE/MAX Austin Associates
3101 Bee Caves Road, Suite 301 – Austin, TX 78746