Home Buyers: It’s the Monthly Payment that matters!
Home buyers are distracted by interest rates and mortgage insurance when they should only be focused on the monthly payment and whether or not that’s affordable. If you can buy a house today and keep your monthly payment under $800, that’s absolutely going to be less than you would pay in rent – and the most solid investment you can make.
Yesterday my first-time home buyers Matt and Sarah closed on a lovely home in midtown Tulsa, and their monthly payment, including property taxes and hazard insurance, is less than $650 per month.
It’s a beautiful and spacious 3-bedroom home built in 1935 – with beautiful hardwood floors, large lot, partial basement and detached garage with a work area. Not only is the neighborhood established and attractive, this particular home had everything on their wish list except a second bathroom.
With FHA financing, the Seller contributing to their closing costs – and good ol’ Mom helping out with the 3.5% down-payment, these young adults made their first home purchase and a lasting investment. Their daughter Annabelle will grow up in the bedroom that has the window seat with the cushion on top and storage below – well, because that’s perfect for a little girl. Family meals will be prepared in the large kitchen and served in the formal dining room, as they have for the past 75 years.
And it will be their home where they will build lasting memories. All for less than a $650 monthly payment.
What was the sales price, you ask? Does it matter? We did indeed get a good deal on the house – a gem that we jumped on quickly. It appraised for $10,000 more than the list price, which probably made ME feel better than anyone else involved.
Home Buyers: It’s the Monthly Payment that matters!
Interest rates are rising and there’s no reason to believe that they shouldn’t or that they will drop at some point. NOW is a good time to buy.
If you are considering home ownership, call a local Lender and ask how much you can spend to keep your monthly payments at $800 per month or $2,000 per month – whatever fits your budget. Stay within your comfort zone and don’t over-spend.
Don’t wait until you get your credit score up ten points in order to get a better interest rate. It will be a wash at best and may actually hurt you to wait. Don’t linger until you have more money saved up for closing costs. Don’t put off calling a Lender. Don’t be embarrassed to ask family for help.
If you are qualified to purchase a home, contact a Realtor and start shopping now. And, if you’re shopping in the greater Tulsa area, give me a call – I pick out great homes! 918-852-5036
Content written and published by Lori Cain.
