{"id":1130,"date":"2020-09-22T15:20:03","date_gmt":"2020-09-22T15:20:03","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=1130"},"modified":"2020-09-22T15:20:03","modified_gmt":"2020-09-22T15:20:03","slug":"cost-home-far-important-price","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/cost-home-far-important-price\/","title":{"rendered":"The Cost of a Home Is Far More Important than the Price"},"content":{"rendered":"
\"\"

The Cost of a Home Is Far More Important than the Price<\/p><\/div>\n

Housing inventory is at an all-time low. There are\u00a039% fewer<\/a>\u00a0homes for sale today than at this time last year, and buyer demand continues to set records.\u00a0Zillow\u00a0<\/em>recently\u00a0reported<\/a>:<\/p>\n

\u201cNewly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.\u201d<\/em><\/p><\/blockquote>\n

Whenever there is a shortage in supply of an item that\u2019s in high demand, the price of that item increases. That\u2019s exactly what\u2019s happening in the real estate market right now.\u00a0CoreLogic\u2019s<\/em>\u00a0latest\u00a0Home Price Index<\/a>\u00a0reports that values have increased by 5.5% over the last year.<\/p>\n

This is great news if you\u2019re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the\u00a0price<\/strong>\u00a0of a house is not as important as the\u00a0cost.<\/strong>\u00a0Let\u2019s break it down.<\/p>\n

There are several factors that influence the cost of a home. The two major ones are the\u00a0price of the home<\/strong>\u00a0and the\u00a0interest rate<\/strong>\u00a0at which a buyer can borrow the funds necessary to purchase the home.<\/p>\n

Last week,\u00a0Freddie Mac<\/em>\u00a0announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let\u2019s use an example to see how that difference impacts the true cost of a home.<\/p>\n

Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the last year. To buy that same home this year, you would need to take out a mortgage of $263,750.<\/p>\n

How will your monthly mortgage payment change based on today\u2019s lower mortgage rate?<\/strong><\/h4>\n

This table calculates the difference in your monthly payment:<\/p>\n

\"\"

Difference in Monthly Payments<\/p><\/div>\n

That\u2019s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Even though home values have appreciated, it\u2019s a great time to buy a home because mortgage rates are at historic lows.<\/p>\n

 <\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Purchasers should realize that the\u00a0price\u00a0of a house is not as important as the\u00a0cost. Finish Reading The Cost of a Home Is Far More Important than the Price<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36,69],"tags":[15,255,18,27,91,158,52,159,42,23,63,20,12,24,48,47,19],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1130"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1130"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1130\/revisions"}],"predecessor-version":[{"id":1133,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1130\/revisions\/1133"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}