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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (86144)	8/20/2007 7:32:41 AM
From: Snowshoe	Read Replies (1) \| Respond to of 306849

>>here's what happens to a 30-year mortgage payment when prices fall 20 percent, but interest rates rise by 2 percentage points:<< Two rebuttal points: 1) The extra time allows home buyers to accumulate more capital and achieve higher income levels, putting them in better financial position to assume the mortgage. 2) A lower purchase price and higher interest rate improves the odds of refinancing later to a lower rate. snowshoe@delayedgratification.com

To: Tradelite who wrote (86144)	8/20/2007 7:41:14 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

There are a few other factors than just that payment to favor waiting. 1. Property taxes are lower 2. Down payment is lower 3. A higher portion of your mortgage payment is tax deductable 4. Insurance costs are lower 5. You can refinance when rates go down 6. Commission is lower I'll take the higher mortgage and lower house price any day of the week. Many people would probably do the exact opposite and rush to lock in/use the lower interest rate.