ph: 602-819-2301
Cheryl
Links
The decision to purchase a home is significant. It is typically the largest financial investment you will make in your day to day life. With the recent real estate troubles in the United States, some feel it is safer to rent than to buy all together. Over time, it is better to buy than to rent.
Inflation is the rate at which the value of the purchasing power of a currency changes over time. In the United States, inflation has averaged just over 3% since 1914. What this means practically is you can expect the cost of milk, gasoline, telephone service and homes to increase at an average of just over 3% per year. When you purchase a home, you lock in it's cost in the purchase years dollars. In other words, if you lock in a $400,000 mortgage at $2,700 per month in 2011 dollars on a 30 year 5% fixed rate mortgage, within 15 years that same home would require a mortgage valued at approximately $605,000, and the going rate on a similar mortgage staring in 2026 would be $4,084 per month.
The simple fact is as time goes on, a mortgage becomes more and more affordable based on the purchasing power of the dollar.
Copyright 2011 Cheryl Menayas, Realtor. All rights reserved.
ph: 602-819-2301
Cheryl
