Fort Wayne Home Buyers, Now is the Time to Act
Do you realize that mortgage rates in the US today are lower than in 1963? In 1963 the average home cost $17,700. You will probably pay more than that despite the low home prices nationwide, but the current 5% average mortgage rate (with no points or fees) is a full percentage point lower than the 6% average of 1963.
During the early to mid 1970s rates ranged from 7.25% to 10% (the norm was 9%), reaching a high of 18% between 1977 and 1981. Today's rates are the lowest in that 47 year history.
When considering purchasing a Fort Wayne Home, the important question to most buyers is simply this: "what will my monthly payment be?" not, "what is my interest rate?" But looking at what one would actually pay over 30 years for a $200,000 house is an eye opener. A good way to look at the savings from a low interest rate is this: on a $200,000 loan, one point in interest rate saves you almost $50,000 over the life of a 30 year loan. That can be college savings for your children.
Just in case you have been in a cocoon or have turned off the news to preserve your sanity, our Federal Government is offering an incentive to home buyers in addition to low interest rates. That incentive is an $8,000 tax credit for first-time home buyers and a $6500 tax credit for qualified repeat home buyers. But you need to find your dream home now. The credits expire on April 30th. Actually, if a binding sales contract is signed by April 30th, 2010, a home purchase completed by June 30th, 2010 will qualify. With the end of April fast approaching, do your research to see if you are eligible for a tax credit. It's well worth your time and not difficult to claim on your taxes. For further information check out federalhousingtaxcredit.com for easy to understand answers to questions about eligibility and more.
Call your Realtor, Courtney Bontempo today to set up home showings for this weekend or to discuss any questions about any Fort Wayne homes for sale. I am also very knowledgeable about the tax credits for home buyers/sellers, as well as the different loan packages available to potential buyers.
Home prices fell again in January of this year. They are even lower than in January, 2009. The supply of homes to choose from is up; the highest in 9 months. What are you waiting for? With a historic indicator of home prices, rent trends, rising for the first time in months and mortgage professionals predicting a jump in rates soon, the stars could not be better aligned to take advantage of the Federal tax credit and buy the home you have been dreaming of.
General Motors (GM) to add 700 new jobs to Fort Wayne Indiana Assembly Plant
Great news this week out of Detroit, General Motors GM will be adding a third shift to our Fort Wayne Indiana Assembly Plant. The creation of the third shift is the result of the Pontiac Michigan plant closure, bringing the production of the Heavy Duty pickup trucks to the Fort Wayne Assembly Plant. Although the jobs won’t be filled locally, it is estimated that this will pump an additional $50 million into the Fort Wayne area's economy. This will also provide a boost to the local housing market in Fort Wayne and surrounding areas. With the possibility of 700 new families coming to the Fort Wayne area this will cause an increase in employment in other areas of service, hence the trickle down effect. Fort Wayne has always been heavily vested in manufacturing and local plants have been immensely affected by the recent decline in the automotive industry. Several news outlets have already reported that multiple suppliers to General Motors will be increasing production and possibly jobs as a result of this decision in Fort Wayne and surrounding cities. General Motors is Fort Wayne’s largest employer and once the 700 new employees arrive in April 2010, the Fort Wayne Assembly Plant will employ 2,800 UAW workers. For those who maybe reading this and coming to the great city of Fort Wayne, we welcome you and expect that you will discover early on why Fort Wayne has been an All-American City multiple times. As a local Realtor for several years, I could'nt be an happier for the great people of Fort Wayne and what great fortune this can bring to the many other local plants that heavily depend upon the Fort Wayne GM Assembly Plant. Hopefully this is just the beginning.
Why rent when you can buy a Fort Wayne Home?
Are you getting tired of paying your monthly rent with nothing in the bank to show for it? Believe it or not, you are not alone. The question becomes, what are you going to do about it? Paying rent every month has a couple of flaws to it-first your rent can go up, and second, your not building any equity.
Fort Wayne is one of the best places to buy a home in the country. We have been ranked for years as having one of the lowest costs of livings. So why do so many choose to pay their landlords mortgage payment each month, rather then choosing to invest in their own futures? I think the answer to many of these questions is that their maybe some misconceptions that paying rent is cheaper then paying a mortgage. After all you don’t have to pay property taxes or home owners insurance. Well owning a home is more affordable then you may think.
Many prospecting home owners question their ability to afford a home, and choose to first rent, but ten years later they can still be found in their cramped apartments. The reality is that you can’t afford not to buy a home. Over the last 10 years, the cost of rental housing in the U.S has increased an average of 3 percent per year. That means that an apartment or home renting for $1,000 per month will cost more than $1300 in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $137,567! That’s a very nice home in Fort Wayne!
What many renters don’t take into consideration is the tax advantages of owning a Fort Wayne home. None of the $137,567 is ever returned to you, either through savings or as an investment. Unlike your monthly rent payment, part of your mortgage payment comes back to you in tax deductions. For example, if you buy a Fort Wayne home for $200,000, with a 30 year fixed rate mortgage at 6.5% interest your monthly payment after all of your savings would only be $1,104 for the life of the loan. That’s 30 years. What will your rent be in 30 years? But the savings don’t stop here. You also have to take into account appreciation. According to The National Association of Realtors home values rises on average of 4.5% per year. What this means is that your homes value after 30 years is going to be worth more then double what you originally paid for it. Thus in 30 years or when ever you choose to sell your Fort Wayne home you will make a hefty profit. If you take into account this profit and apply it towards your yearly mortgage payments, it will decrease the total amount of payments per year to $1,566, versus the annual rent of $12,000, which you can’t sell in 30 years.
For a majority of those living in Fort Wayne, their home is their largest financial asset. Call me today and make that first step towards home ownership become a reality. When you call me, I will put you into contact with the best Mortgage specialists in Fort Wayne who will work with you on getting pre qualified for a Fort Wayne home loan. The best thing is that these first initial steps cost you absolutely nothing. Upon getting pre-approved we can schedule a meeting and pin point what it is that you’re looking for in a home. Just remember as a buyer you don’t pay a commission. So my services are absolutely free to you. I look forward to working with you.
Fort Wayne Real Estate Bluffton Real Estate Waynedale Real Estate Aboite Township Real Estate Ossian Real Estate New Haven Real Estate