Lower Interest Rate = HIGHER Purchase Price!

Buy land or buy a home! 🚨 Did you know that when interest rates are low, it increases the amount you can borrow?? 🚨 That’s why right now is a good time to find out if you qualify to purchase property. 🏠Historically, real estate is one of the safest investments one can make. Real estate doesn’t tank and rise like the stock market does. Plus, land does not depreciate like other assets! 🏕 DM, text, call, or email to talk about buying for investment, your FIRST HOME, or selling in the Pacific Northwest! ⬇️

DAISY CASILLAS
(206) 866-8090
ListingsFor1.com

1% Real Estate Broker – The New Normal™

The MYTH of 20% Downpayments

Many potential home buyers give up before they’ve even gotten started because they think they don’t have enough for a down payment. Oftentimes it’s because they’ve bought into the myth that you can’t buy a home with less than a 20% down payment. Many people think you must use an FHA loan for a low down payment too. NOT true! In fact, with a conventional loan, you can go as low as 3%! That’s lower than FHA’s 3.5% minimum. Plus, VA loans and USDA loans are as low as ZERO percent! Woohoo! Check out these myth-busters in this infographic (click the link to make it larger; may need to click it twice), and CALL, EMAIL, or TEXT me about purchasing a home now.

DAISY CASILLAS
1% Real Estate Broker
(206) 866-8090 call or text
ListingsFor1.com

1% listings. Just 1.5% total if I represent your buyer too.

Two Things You Need to Know About Mortgage Interest Rates

Number 1 – There are 7 factors that determine your rate. According to the Consumer Financial Protection Bureau, your credit score, home location, home price, loan amount, down payment, rate type, and loan term and type can all affect your rate.

Number 2 – Your interest rate and annual percentage rate (APR) are different. Both are expressed as a percentage, but your interest rate is the cost you pay each year to borrow money. An APR is a broader measure that includes your interest rate, points (if applicable), and other charges you may pay to get a loan. It’s what allows you to compare one lender’s offer to another.

CLICK HERE TO LEARN MORE ABOUT MORTGAGE LENDERS.

Pay YOURSELF Rent

Are you a first-time home buyer afraid to take the leap? You continue to pay rent – money that never comes back to you when you move. Goodbye money 💸!

You DO pay a mortgage though – your landlord’s mortgage! AND you pay for the repairs too. People who buy real estate to rent take into account mortgage and repair/maintenance costs and calculate that into their rental rates before they even buy an investment property.

With interest rates super low right now, it IS a good time to buy. Take this house (pictured above) I sold in 2015. It was a cosmetic fixer purchased by first-time buyers in Seattle for just under $280,000. It’s now worth over $500,000. That’s about $44,000 per year of appreciation! That’s REAL MONEY when they’re ready to sell – money they didn’t have to sweat for at a job. When they sell, all that rent they paid themselves will be returned to them WITH appreciation. 💰💰💰 Although they pay interest, the appreciation FAR outpaces the interest and they will walk away with a major profit. Contact me about buying your own home!

Outlook for Interest Rates

A recent economist I respect said we should expect deflation over the next two years with inflation at the 3-5 year mark. Of course, no one has a crystal ball! These are assumptions based on what’s happening today and many things can happen to impact and change this assumption. Over the next one to two years, we believe that deflation is probably more of a risk than inflation. We expect that the recovery from the coronavirus downturn is likely to be slow, keeping inflation and interest rates low. As the economy mends, the Fed will gradually unwind some of its emergency lending. As loans get repaid, the Fed will let some of its holdings roll off its balance sheet, and start lifting interest rates—perhaps two or three years from now. We expect the Fed to keep the federal funds rate pegged near zero for at least two years, and 10-year Treasury yields to remain under 1% in 2020 and under 2% in 2021. Let’s remain positive and rooting for our communities and nation!