How to Get More House for Less Money in Alpharetta GA

Posted by Jeff Aughey on Tuesday, May 7th, 2013 at 10:40am.

[caption id="attachment_1182" align="aligncenter" width="432"]Current House For Sale in Alpharetta $289,900.00 -- 10885 Windham Way, Alpharetta, GA 30022 -- 4 bedroom, 3.5 bath, in-ground swimming pool, finished basement[/caption]

Why Your Money Buys More House Now

When the fed quits buying up mortgaged securities and essentially subsidizing homeownership, the party is over. Right now IS the time to buy. With rates well under 4%, anyone who wants a house, and can get approved, should buy. If the strong rally in the stock market continues, you can expect the current, historically low interest rates will to begin to climb. So, if you are trying to decide if now is the buy or sell a home, decide quickly. If you are selling, your potential buyers will thin out as the rates climb and if you are buying, the longer you wait, the higher the total cost will be on any given home.

Let Me Illustrate

Let's use the house pictured here, and round the figures to make it easy to see the difference in how much more house you can buy -- and how much less you can pay for it -- if you buy now. With the current interest rate of 3.5%, a $300,000.000 house will cost you $1347.00 (principal and interest) on a 30-year fixed loan. When the interest rate rises to 5.5%, the house will cost $1703.00 per month, an increase of $356 per month for the same house. If you can only spend $1347 per month, it means you will have to find a house that costs $78,000 less to retain that monthly payment. Once the interest rate goes up, you can only afford a house that costs $222,000. Viewed another way, even if you can still afford the monthly payment at 5.5%, do you really want to pay $128,244.00 more for the same house over the life of the loan? If not, start looking looking now. If you need help, call me. I'd be happy to show you the above house or another listing you may like.

Leave a Comment