If your home isn’t appreciating now, can your mortgage?
A big thank you to Mark Timpane at Edina Realty Mortgage for putting this to print:
Thinking about refinancing into another conventional? There might be another option for you. Fast forward three to five years from now. The real estate market correction will be behind us and you decide that now is the time to move onto a newer home. But what if rates are at 6.5 % or more and your home is valued at or a little higher than you bought it. Is there an option that can make you home more attractive? If you refinanced today with an FHA loan at 5.0% for example, when you go to sell, your buyer would be able to assume your mortgage (only $500) and take advantage of today’s lower rates. The general rule is that for every 1% decline in interest rates a buyer gets 10% more purchasing power. So the cost of assuming a $172,500 home has the same monthly payment as buying a $150,000 home at future interest rates. So you have now positioned your home against homes with fewer amenities, and other $165,000 homes cannot compete on a costs basis.
Need to refinance-call me today
Mark Timpane
Edina Realty Mortgage
320.240.6157
Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud
http://StCloudEdina.com - Get a free list of the bank owned properties on the St Cloud MLS
http://JasonTangen.EdinaRealty.com - Find out what you home might be worth if sold.
