If you are waiting for the prices of homes to drop to purchase Wilmington NC real estate, just look at the difference in the rates for the last 6 months.
Your purchasing power is at its greatest right now!
The low rates coupled with a decline in housing prices; gives you the best opportunity to purchase a Wilmington NC home at a discount today.
Considering a home with a loan amount of $220,000 at today’s rate of 4.25% for a 30 yr. fixed loan. The payment for that loan amount at 4.25% would be $983.87. If you wait, and the rates were to go back to the April 2010 level of 5% , the same payment of $983.87 would only allow you to borrow $201,605.14. You have lost $18,395.00 in purchasing power.
This does not even take into consideration that the market should be improving and the price of the home you want could be increasing.
Most will say it will take a while for the rates to return to 5%. But remember, that it was only in April of this year that they were at 5%, rates increase twice as fast as they decrease.
Information furnished by Daniel Downing Prime Lending Wilmington NC 538-6473.
Loan Amount Rate Payment Rate Loan Amount
$200,000.00 4.25% $983.87 5.00% $183,276.00
$210,000.00 4.25% $1,033.07 5.00% $192,441.95
$220,000.00 4.25% $1,082.26 5.00% $201,605.14
$200,000.00 5.00% $1,073.64 4.25% $218,246.83
$210,000.00 5.00% $1,127.32 4.25% $229,159.11
$220,000.00 5.00% $1,181.00 4.25% $240,071.51