Interest Rates as of 1/5/11 are 4.75 for 30 years
If you were buying a $150,000 Home with a FHA loan this is what you would need!
- Down Payment of 3.5%, which would be $5250, and can be a gift from someone.
- You can ask the seller to pay the closing costs which would be about $5000.00, that way you don’t have to come up with them.
- You need decent credit with a score of about 600.
- You need a job, or proof of income to be able to make payments.
- You should get a pre-qualification from a lender, to know what amount the lender would loan you based on your income and debt ratio.
- Your payments of principle and interest would be $782.48.
- You would have to add on around $150-$200 for taxes and insurance.
- YOU CAN”T RENT SOMETHING FOR THAT!!!!!
Interest Rates are on the way up! They higher they get, the higher the payments will Go! Prices for houses have never been so low, well not in a very long time.
A house that was valued at $200,000 5 years ago is now in the $150,000 range. Some of them, not all. Why would you wait? If you can get a great home, in a neighborhood that you love, don’t wait! Either it will be sold to someone with better insight, or it the interest rates will go up and not only will your payments be more, but you will pay thousands more over the life of the loan. Be smart! Play with the pros. Do not listen to the pessimistic people that drag everything down with them. In 5 years, you will be the one smiling….
LISTEN to ME!