Waiting to Buy? Do The Math!

Some people wait to buy a home until they have 20% down payment to avoid paying the mortgage insurance which is required by lenders when the loan-to-value ratio is greater than 80%, with the exception of VA loans.

To illustrate a typical situation, let’s assume that buyers have $10,000 for a down payment on a $200,000 home. They could purchase it today with a 95% loan or save another $30,000 in order to get an 80% loan without mortgage insurance.

If it took three years to save the additional down payment, the $200,000 home at 3% appreciation would cost $218,545. A 20% down payment on the increased sales price would be $43,709, less the $10,000 the buyers currently have leaves them $33,709 to save which would amount to $936.36 a month. They would secure a $174,836 mortgage at the then current mortgage rates, which in all likelihood, will be higher than today’s rates.

The alternative is for the buyer to purchase the home today with a 95% loan at today’s low interest rates plus approximately $85 a month for mortgage insurance depending on their credit score. At the end of three years, the unpaid balance would be $179,548.  Assuming the home will be worth the same $218,545, the buyer’s equity would be almost $39,000.  To reduce the mortgage to the same amount as the first example, the buyer would need to make an additional $125 a month principal contribution above the normal payment. Then, the mortgage would have an unpaid balance at the end of three years of $174,775.

When there is sufficient equity in the home, the mortgage insurance is no longer required. Some lenders may drop the mortgage insurance requirement with an appraisal to provide proof. In other situations, it may require refinancing to eliminate the insurance.  Call to discuss options that may be available to you.

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From left to right, Deborah Swainey (919-412-8650), Joe Ward (919-518-8182),
Valerie DeLoach (252-916-5048), and Kellie McDonald (919-961-2720).

We are a real estate team who cares about our clients. If you are considering
selling your home and would like some honest, professional, and
experienced guidance,
please contact us today.

Connect with us on social media to learn more about our team and
how we can help you find your new home!

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Move-In Ready Rolesville Home

124 Brandi Drive, Rolesville NC 27571
Brandiwood

$249,900

Link to Listing

exterior

This move-in ready four bedroom, three and a half bathroom home shows like new and is located on a hard to find half acre cul de sac lot in popular Rolesville, NC.

culdesac

Rolesville, the second oldest town in Wake County, has been one of the fastest growing towns in North Carolina for the past few years. Rolesville was chosen as one of “America’s Top Boom Towns” earlier in 2016! It was the only town in North Carolina to make Realtor.com’s list!

Everyone loves an open floor plan these days and this house has it!!! The large kitchen, with stainless steel appliances and solid counter tops, opens in to the family room.

If you are a fan of formal areas, this home has that too! The formal living room flows right into the formal dining room. Perfect for entertaining!

formal room

The master bedroom suite is your own private retreat with vaulted ceilings, a huge walk-in closet, and an updated bathroom with a double vanity, deep soaking tub with custom surround tile, and separate shower.

master

Although the home was built in 2002, it feels almost new with fresh, neutral paint throughout. It can live as either a four bedroom home or a three bedroom home with a bonus room. The bedrooms are large for homes of this size!

The large, flat backyard is perfect for entertaining, playing or just private relaxation. Just minutes from Wake Forest and I-540.

View VIRTUAL TOUR here!

 

survey

Directions: Highway 98 to Averette Road (County 1945). Right on Chalk Road. Left on Teresa Drive. Left on Brandi Drive.

brandi map


For more information, or to arrange a time
to view this property, call the Joe Ward team today!

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From left to right, Deborah Swainey (919-412-8650), Joe Ward (919-518-8182),
Valerie DeLoach (252-916-5048), and Kellie McDonald (919-961-2720).

We are a real estate team who cares about our clients. If you are considering
selling your home and would like some honest, professional, and
experienced guidance,
please contact us today.

Connect with us on social media to learn more about our team and
how we can help you find your new home!

facebook wordpress twitter linkedin pinterest instagram googleplus-2