Thinking of buying a vacation/retirement home? Now is the time!
Intrestingly, the sales of vacation homes skyrocketed last year. Recent studies show an increasing number of particiapants who said they would likely buy a second home, such as a vacation or beach house, to use during retirement. For many Baby Boomers, the idea of finally purchasing that vacation home (that they may eventually use in retirement) makes more and more sense as the economy improves and the housing market recovers.
If your family is thinking about purchasing that second home, now is be the perfect time. Prices are still great. If you decide to lease the property until you’re ready to occupy it full time, the rental market in most areas isstill very strong, and not to mention you can still get a historically low mortgage interest rate. Call Craig Adelman today at 303.809.8979
But we now current mortgage rates won’t last forever…
In Fact, According to FreddieMac, the interest rate for a 30 year fixed rate mortgage at the beginning of April was 4.4% and predicts that mortgage rates will steadily climb over the next six quarters.
Let’s just assume you want to purchase a home for $500,000 with a 20% down payment ($100,000). That would leave you with a $400,000 mortgage. What happens if you wait to buy this dream house? Call Craig Adelman today at 303.809.8979
Prices are projected to increase over the next year and a half. However, for this example, let’s assume prices remain the same. Your mortgage payment will still increase as mortgage rates climb to more historically normal levels.
This table shows how a principal and interest payment is impacted by a rise in interest rates:
Who wants to pay more when they can pay less! Call Craig Adelman today at 303.809.8979