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Posts Tagged ‘buying an oakland county mi condo’

Interest rates are low- super low. How low? Low enough you can pay today’s prices for a smaller payment than 2008 prices with 2008 interest rates.

Last week’s rates for a 30 fixed with 20% down and a half point was 3.625%. With good credit of course. A few weeks ago you could get a conventional mortgage for only 3.5%

But they won’t stay this low forever. As the housing market, and economy in general, improve the rates will go up. I doubt they will ever get back up to the 9+% they were when I got my license, but to put things in perspective the average rate during peak price time of 2003, 04, 05 was right around 5.8%. The National Association of Realtors (NAR) projects interest rates will get as high as 5.4% by the end of 2015.

What this means for you, the home buyer: If you can afford a $500,000 house today you will only be able to afford $405,000 at the same payment. You don’t like what you’re looking at for $150,000 today, be prepared to stay under $120,000 if NAR is right.

See the charts below for an idea of how your buying power diminishes as interest rates go up.

buyers purchasing power 300k March 2015buyers purchasing power 150k March 2015buyers purchasing power 500k March 2015Jackie@JackieHawley.com
(248)736-6407
www.Search-The-MLS.net

www.MiRelocation.com

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Considering a Condo? Figure the Association Fee in Your Pricing

If you have been pre-approved to buy an Oakland County MI home for X price as long as the property taxes don’t exceed Y doesn’t mean you can qualify for a mortgage for the same price condo. Condominiums in Oakland County MI tend to have a monthly association fee. If you qualify for a $1200/month house payment that $1200 needs to include the association fee. And they can be pretty hefty.

Now to the defense of condos– the price tends to reflect both the association fees and the perks (maintenance, etc the association takes care of) of condo living. But if you’re qualified to buy a $150K house and having trouble finding what you like, don’t think you can just go buy a $150K condo.

Tomorrow I will be showing a condo in Clarkston MI listed for $155,000 with an association fee of $261 per month. Looking at the listing photos and after reading the description it sounds like a very nice home. Probably nicer than a regular house in the same area. After factoring in the association fee your monthly payment would be about the equivalent of a $200,000 home with no association fee.

So if you are looking for a home in the North Oakland County area and are content with either a house or condo, please consider you will have a different price limit for the condo than for the house.

Jackie Hawley
Keller Williams Realty
Cell: (248)736-6407
Email:
Jackie@JackieHawley.com

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