New Blog - for Fun - Your Monthly Estimated Payments

Taken From a Facebook Notes/Blog

You have to go outside today - it is stunning in Laguna Beach! Stop waiting to buy Property!

Saturday, January 30, 2010 at 3:26pm

drove with the top down in the cold air and blue sky,..listening to some cool Abba,...heated seats on with heater blow'n warm air on my feet,..my gosh what a good feeling,..lots of sensations! cold air on your face - a warm tushy and comfy feet,...it makes u feel so ALIVE,.. that and a few shots of espresso on an empty stomach,..lol - jazzed to go out wit some clients today to check out some Laguna Beach homes- fyi - the price drop on homes - the one u hear of so often is semi inaccurate - not so tru in beach areas ,..2nd,..the interest rates went from (in some cases ) below 4.0% to average of 5.5% - this means you lost more than 10% in purchase power and will end up paying more each month for less. PLEASE do not get into a 6% loan because you waited and waited thinking a house will drop more.

fewer properties on the market = more competition for those items,..more competition = higher prices...Listed price - if it is uber low is a fishing expedition and will get higher offers as people bid on a home.

DO not be fooled by a home with a super low price - listed as a short sale,..subject to lender approval.

Do not be fooled by an uber low price on a home to good to be true,...the adage of too good to be true,...well it is.


Here is a sample of a home that is 450,000 at a 3.75% rate = 2084 x 12 = $25,008

Same home at a 5.75& rate = 2626 x 12 = $31,512 You Just Increased your yearly expenditure by $6,504.

Or - lets say you wanted to match the $2084 a month rate at the current 5.75% you would only be able to buy a home worth around $326,250 +, - You just lost $123,750 in purchase power.


I hope this shows you that - yes a house price is important - but the rate at which you pay the loan back is just as or even more important.

In this case - you went from owning a 3 bedroom single family home to a small 2 bedroom condo or smaller type home for Southern California.


Arrgh - this makes me feel ill when people keep saying they will will drop further,...

What a loss! That loss is close to 28% of your purchase power. OUCH!