So you’re thinking about moving to Dallas, Texas, however, everyone keeps telling you, this is not a good time to buy that it’s a seller’s market, and you are going to overpay for a house. Well, that’s not necessarily the case. I believe this is actually a buyer’s market. And I’m going to tell you exactly why you should still move to Texas and why now is the best time that it’s ever been and we’re gonna get after it right now!

The rates, as far as mortgages go, if you’re going to be financing, are at an all-time low. We’ve never seen rates this low before. We have a client that we just got them pre-approved for yesterday at 2.7%. That is crazy! Remember last year when they were 5%? Everybody thought those were good rates. So what’s the difference? Here’s the situation. And we’re also getting people asking, you know, “Should I wait I want to come in?  I want to rent for six months or a year…” and most likely going to be a year most rentals are going to be at least 12 months, well, a lot could change in 12 months, a lot could change in particular the rates, this is why it’s really a buyers market. Because the rates are so low, every percentage of a rate increase is going to cost you about $50,000 on the price of your home.

Disclaimer, I’m just a humble real estate agent trying to help you understand some concepts here, but otherwise, always check with the mortgage professional. Back to my example: First, a 3% principal and interest over a 30 year fixed mortgage with 5% down, let me throw out that disclaimer as well is going to be around $1,591. If the rates go up to 4%, then that’s going to be about 1800 $14, a difference of around $300, I’m doing this math in my head just for a second. And if the rates go up to 5%, on that same $400,000 house, your payments going to be around $2,040. That’s a big difference! Alright, so you’re thinking about from 3% to 5% is almost $450 per month in price difference.

Everyone’s worried about paying something like $30,000 over, but in reality on a 30 year mortgage, that is going to increase your payment minimally very, very minimally, it’s not going to increase it that much at all. So if you do pay 10, or $20,000, over even 30 it’s not really that big of a deal, it seems like it And trust me, we don’t want you to overpay, we are, we are actually getting deals for our clients at list price or slightly over, the highest we’ve had to go over so far has been 15,000, which is great.

But if rates go up to 4%, or 5%, which they likely will do in the next 12 months, then that is going to impact you a lot. And as my example just shows even on a $400,000 house from three to 5% is a $450 a month difference, that is $5,388 a year that is over a 30-year mortgage over $161,000 in difference. Now, the point is that refinancing gets you a lower rate by 2.7. If they continually go up over time, then you’ll never have a real opportunity to refinance.

And if you look at a $600,000 home right now at the current rates, and not even at 2.7, again, we round up to 3%. Just for simple math, you’re looking around $2380 on a payment, $2,380 with principal and interest with 5% down. If that jumps up to 4%, then you’re looking closer to 2721 2007 or $21. And if you jump up to 5%, you’re looking at $3,060. Okay, so that’s the big difference. That’s a difference of $673 per month, there’s about 8076 per year, and over a 30-year mortgage, that’s $242,000. That is not where you want to be, you do not want to overpay $242,000 for a home. That’s ridiculous.

What I’m trying to say here is that that’s a lot of money that you’re overpaying for that house, and so that’s why I still believe it’s a buyer’s market right now. The problem is right now as inventory is low and there is that’s just the issue but now inventory is starting to come on the market a lot more because we’re moving into spring and summer and of course, this is the time that sellers want to buy as well. So we are seeing more inventory come on the market, and we’ve got a pretty good strategy for our clients.

If you’ve been working with an agent for a while that just isn’t getting you homes quickly or finding you what you want,  give us a call! We’d be happy to talk to you, because I think I’m pretty sure we can find something for you. We’re extremely creative on finding the right deals, and then getting those deals accepted.

But going back to the point is that interest rates are at an all-time low right now. And that is something I think you should think about taking advantage of and if you are considering a move, despite the lack of inventory, despite the multiple offers, you know, if you’re working with the right team, such as myself, and my partner, Travis and the team, these guys that are are mean, they’re hustlers. All right, so the living in Dallas, Texas team is here for you. And we can make it happen. So just give us a call, shoot us a text, send us an email, or even schedule a zoom, call below. So until next time, well hope to see you around town!

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