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IT IS CHEAPER TO BUY A HOME

Financial advisers are all saying that it makes perfect sense to buy a home now. Trustworthy and educated sources of information like: Forbes Magazine (The Next Mortgage Crisis); Wall Street Journal (It's time to buy that house); Market Watch.com (Now might be the best time ever to buy a home) and JP Morgan Market Insights (Housing: a time to buy) suggest that now is one of the best times ever in history to buy a home.

Home ownership is better than renting. According to Zillow.com information provided, the median home price is $121,700. With a 20% down payment at 4.12% mortgage rate, the monthly installment is $470 per month. To rent the house could be $1,100 per month. According to The Federal Reserve's recent "Operation Twist" the average 30-year mortgage rate hit record lows down to 4.01%. The difference between a 4% rate and a 5.5% rate on a home of $200,000 is $200 per month and can save a homeowner about $60,000 on the entire loan for the loan period. Case Shiller recently announced that real Estate values have returned to 2003 prices. In 2003 a 30 year mortgage stood at 5.88%. Today it stands at 4%. On a home purchased for $250,000 the difference in monthly costs is:  in 2003 an interest rate of 5.88% calculated a monthly payment of $1,478.84 and today an interest rate of 4.00% calculates a monthly payment of $1,193.54. You buy the home for the same price today, but with the cost of $100,000 less.

Published Friday, December 02, 2011 12:17 PM by Joe Prunty

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My goal is to help provide local Cheyenne and Pine Bluffs information to help you keep up with what's going on in Cheyenne. You will be able to get information on Cheyenne Events, Cheyenne News, Information about the Cheyenne Real Estate Market and New Construction and so much more. Check back often because things change in Cheyenne every day!