Weekly Update: September 23, 2011

Weekly Update:  September 23, 2011

This week just proves the phrase, “You don’t know ‘till you know”.  Gloomy news from the Fed and out of Europe cast a long shadow over the economic prospects for the near future and everyone ran for cover. Investors clearly think that companies and governments world wide are facing some stiff headwinds.  They are moving their money out of the stock market and the Eurozone and into the US bond market.  This ‘flight to safety’ effect caused a 8%  drop in S&P 500 index and pushed mortgage rates to all time lows.

There has NEVER been a better time to buy a home.   The buying power you have now is INCREDIBLE.  A little over a year ago, a $1,000 monthly payment (P&I) would get you a  $185,000 mortgage…today that same $1,000 will get you a $210,000 mortgage.  Factor in the taxes and insurance for your area and all those home renters are now buyers.  Capitalize on  other's panic.  This IS the buying opportunity of a lifetime.

This example is based on a comparison of two 30 year fixed rate mortgages. A)  Purchase price of $232,875 with 20% down, amount financed $183,600,  5.0% rate, P&I payment $1,000, APR 5.054% ; B) Purchase price of $261,875 with 20% down, amount financed 209,500, 4.0% rate, P&I payment of $1,000, APR 4.051%.  Credit and income restrictions apply.  This example is for informational purposes and is not an offer to lend or extend credit.

Stephan Akin
Sr. Loan Officer
NMLSR# 231112
Office: 214.987.9999
Fax: 866.728.6346

WR Starkey Mortgage, LLP NMLSR # 2146
2740 N. Dallas Pkwy., Suite 150, Plano, TX 75093

Starkey Mortgage is an equal housing lender.

The views expressed are those of the author and do not represent Starkey Mortgage