Middletown couple helps first-time homebuyers accomplish ‘The Dream’

It’s the classic example of which came first, the chicken or the egg?  “I’ve recently graduated college or trade school and found a good job.  I’ve been able to save a few dollars for a small down payment. I know I don’t want to pay rent forever but when can I actually buy my first home?”  Mike and Jill Kohler, owners of Net Equity Financial Mortgage and Real Estate Services in Middletown Township, think buying a home is not only possible, but likely for many.

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Why move-up buyers should sell NOW

submitted by Lynne Kelleher, Berkshire Hathaway Home Services/Fox Roach Realtors Newtown Office

Do you store your cereal in the oven? Are you having difficulty shoving ONE MORE THING under the bed? Do you live out of your hamper because there’s no place to put away the clean clothes? If the police were called to your home, would they think it had been ransacked because your stuff is all over?

If you answered “Yes, good heavens YES!” to any of the above, I bet you’ve been thinking about moving. And if you’ve been on the fence about it, here’s what waiting could cost you.

Those in the know are predicting home prices will rise about 4% nationally and rates could increase another full point in the next year. If you’re selling your $300,000 home and moving up to a $400,000 home, here’s how it shakes out.

If you wait, your current home’s value would increase to $312,000. But now you’d need to pay $416,000 for your new home – a net increase of $4000 if we keep the numbers simple. Not horrible, right?

Here’s the kicker…if rates increase from 4.5% on the $400,000 sale (which is where they’re currently hovering), to 5.5% on the $416,000 sale, look what happens. Assuming a 20% down payment, your monthly payment for principal and interest increases from $1622 to $1957 – a whopping $335. Not chump change by any measure!

To put it another way – if you wanted to keep your payment at $1622, you could only afford a house for $344,000 at a 5.5% interest rate. Talk about an impact on buying power.

There’s no two ways about it – now is the time to sell, and move up, down or to Tahiti. So throw out, pack up and clean up, then get your home on the market. If it’s in good condition and priced correctly, it will sell and sell quickly.

Isn’t it about time you took your life off hold and moved forward?

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