With interest rates below 4% is now the right time to purchase a home?  For renters or move up buyers you should look at the numbers and see if the fit is good for you.

For example, what can you get for $100,000?  And what would your payment be?  In Meridian, Kuna and Star you could purchase a 3 to 4 bedroom, 1500 sqft (approx) home.  In Boise, it varies greatly by the area you want to be in, but you can also purchase a home of this size for $100,000.

Payment Scenario for $100,000 home:

Interest rate of 3.875% Principle and Interest payment

15 year payment                              30 year payment

7.33/$1000 = $733/mo (P&I)        4.70/$1000 = $470/mo(P&I)

Adding taxes and Insurance of approx. $150/mo

$883/mo total payment                $620/mo total payment

Most people would agree that a payment of $620/mo for a 1500 sqft home is less than what you can rent for.  Plus you get the advantage of never having your rent raised and tax advantages of being a home owner.

What if you don’t have enough money for closing costs or down payment?  You should talk to a lender about various financing options.  In Kuna and Star, you can still get a Rural Developement loan that is zero down.  You may qualify for other local neighborhood housing loans or possibly VA.  A lender can look at your situation and advise you on the best options for you.  In Meridian and Boise, FHA only requires 3.5% down.

I’ve attached a link to another article titled:  ‘Why Buy a Home’  that was written by REALTYTIMES:

http://realtytimes.com/printrtpages/20120125_whybuy.htm

For many potential homeowners NOW really could be the right time to purchase a home and lock in a fantastic interest rate for the life of your loan.

Please contact me for names of lenders that can give you the financing options for your situation.

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