When Does One Plus Five Equal Eighteen?

Written by Jeff Gould Posted On Thursday, 02 April 2015 03:51

State: Alabama
SOLD: 2
Old Article Id: 34066

One Plus Five Does Equal Eighteen

I know, I'm crazy. One plus five can never equal eighteen! But it does, so let's have a little fun today and let me show you how it does and why it may matter if you are looking to buy a home.

You and your family are thinking about purchasing a home. You are not sure if you want to purchase now or wait a year. Current mortgage rates are about 4% and you are looking at a $200,000 home. If we head over to our mortgage calculator we will see the following.

Mortgage Amount $200,000

Interest Rate 4%

Principle & Interest $954.83

Historically home prices appreciate between 5 and 7 percent a year. If the $200,000 home appreciates 5 percent in value that would add $10,000 to the purchase price and make the new purchase price $210,000. We know that there is no way mortgage rates are going to stay this low forever. So let's say over the next year mortgage rates increase 1 percent to 5 percent. Now let's look at what those changes do to our example.

Mortgage Amount $210,000

Interest Rate 5%

Principle & Interest $1127.33

Your monthly payment for just Principle and Interest went up from $954.83 a month to $1127.33 a month or an increase of 18.06%! Hmmm so a 1% increase plus a 5% increase did equal an 18% increase!

Why Does This Matter?

Besides the fact that your payment will be 18% higher every month, this increase in payment could have a direct impact on your ability to qualify for a loan.

Ultimately you need to do what is right for you and your family. With home prices still fairly affordable and interest rates extremely low, this is a great time to buy. Here are 5 Questions to Ask Yourself to See If You Are Ready to Buy a Home.

About the author

The above real estate article “When Does One Plus Five Equal Eighteen?” was written by Jeff Gould.

Jeff is a top selling, nationally recognized Florida REALTOR® and local FishHawk Ranch real estate expert. You will find him selling homes in the Tampa Bay, Florida and surrounding areas. Some of those areas include FishHawk Ranch, Lithia, Riverview, Valrico, Apollo Beach, Brandon and Tampa.

If you are looking to sell or buy a Tampa Bay area home, Jeff is your local and trusted professional. He can be reached via phone/text at (813) 421-3007 or contact him here.

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Jeff Gould

A little about me, as a longtime FishHawk (Tampa Florida area) resident and full time Realtor I know how difficult and demanding it could be to buy or sell a home.

In the majority of instances a real estate purchase will be the largest financial transaction a person will make throughout their lifetime. I believe is important to choose a Realtor that is an expert in the area they are working and someone that you are comfortable with.

My Philosophy:

I believe the role as your Realtor is to guide you through the buying or selling process, taking the time to make sure you are comfortable and understand every step of the transaction. I will ensure you know that market value of what you are buying or selling. I will assist with the contracts, addendum’s and any inspections you may need.

Comprehensive knowledge of the area:

Being long time resident of FishHawk and full time Realtor, I know FishHawk and the local communities very well. This in-depth knowledge of the area combines with my extensive real estate expertise will help you make the most informed decisions possible.

My Qualifications:

1) Full time Realtor in Florida for over 11 years. I have been involved in real estate since the 1980’s. Yes I remember 18% interest rates!
2) Since January 2013, closed over 80 transactions. That ranks me in the top 1% of Realtors in the Tampa Bay area.
3) Proud FishHawk resident since 2005.
4) Trained to work with both buyers and sellers.
5) Closed over 10 Fannie Mae REO transactions during the last year as a buyer’s agent. These are very complicated and time consuming transactions. They are not always easy to close but in some cases they could be a good purchase for a buyer.
6) Short Sales are no problem! I have a team of negotiators that have negotiated and closed hundreds of Short Sales. It is a complicated process but I will be happy to confidentially explain the process, answer your concerns and guide you through this process.

Thanks for reading. I am at your service for real estate in the Tampa Bay area and I am the real estate expert for FishHawk Homes For Sale. Click here for a great FishHawk Ranch Community Video Tour.

http://www.FishHawkRanchRealEstate.net Email Jeff Gould about this article

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