“I am going to wait till prices drop more”

Interesting Perspective from my friend Bob Veldkamp

Good morning – I was speaking with a Realtor this morning and she was very frustrated with buyers saying they want to wait for prices to drop more. That got me thinking about the forecasts I am reading that say when interest rates start to rise, they will move fast. So…, I did some comparisons that took into account prices dropping but also show what higher interest rates will do as well. Bottom line is, the higher the loan amount, the better off they are to buy today and take advantage of the current low rates. I hope this will help you and your clients.

$200,000 loan at 4.00% interest:
Principal and Interest pymt = $955

What happens when prices drop but interest rates rise?

$150,000 loan:
RatePrincipal and Interest Pymt
5.50%$852
6.00%$899
6.50%$948
7.00%$998

$300,000 loan at 4.00%$ interest:
Principal and Interest pymt = $1432

What happens when prices drop but interest rates rise?

$250,000 loan:
RatePrincipal and Interest Pymt
5.50%$1,419
6.00%$1,498
6.50%$1,580
7.00%$1,663

Bob Veldkamp

“Your Premier Lender”

689 Tank Farm Rd Ste #230-B
San Luis Obispo, CA 93401
Cell: 805-801-8444
Office: 805-544-6133
Fax: 805-544-6149
bobveldkamp@gmail.com
CA DRE License # 01410661


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