Joint Base Charleston Real Estate

Looking to Buy?

March 8th, 2011 8:41 AM by Jodie Ford

You’ve heard me say time and again, that Charleston Military home buyers need to be concerned about the COST of a home, and not the PRICE…..

As discussed in my last blog, unless you are a cash buyer, you have to consider the cost of financing the home.

Remember – Price PLUS Financing EQUALS the cost of a home

Today buyers have a unique opportunity….

· Historically low interest rates

· The ability to lock in rates for thirty years

According to Freddie Mac, from 2006 to the start of the financial crisis in 2008, the average rate was 6.29%. Since then, the average rate has been 4.92%.

Today, a Charleston AFB home buyer can get a 30 year-fixed-rate-mortgage at approximately 5%. However, rates these low may soon disappear.

In the administration’s REFORMING AMERICA’S HOUSING FINANCE MARKET: A REPORT TO CONGRESS, the government states:

…our plan also dramatically transforms the role of government in the housing market. Going forward, the government’s primary role should be limited to robust oversight and consumer protection, targeted assistance for low- and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response…

Under our plan, private markets … will be the primary source of mortgage credit and bear the burden for losses.


So What Does This Mean to Charleston Military Buyers?

According to AnnaMaria Andriotis, writer for Market Watch:
“In the proposals were changes that will mean more expensive mortgages, with higher fees and, probably, higher interest rates, larger down payments and, in the near term, fewer lenders to choose from.”

Additionally, many experts have speculated that limiting government support may cause the 30-year-fixed-rate mortgage to disappear. Canada allows a buyer to lock in a rate for a five year term; then the buyer must renegotiate a new mortgage at current rates. Could this happen here?

Mark Zandi, Chief Economist of Moody’s stated:
“A private system would likely mean the end of the 30-year fixed-rate mortgage as a mainstay of U.S. housing finance.


Bottom Line

The COST of a Charleston AFB home is significantly impacted by the interest rate. Today, we can get a 5% mortgage and lock it in at 5% for the next thirty years!! But for how long?

*Information provided by the KCM Crew via**

Torri Jacobsen
Buying or selling a home doesn’t have to be hard, but choosing the right Realtor DOES make a difference. I specialize in making first-time home buying a great experience for military families moving to the Charleston, SC area. Call or email today, and let’s make this your best move yet! You’ll feel right at home with me.

Jodie Hurt
I specialize in helping military families enjoy a smooth PCS in and out of Charleston. I have a passion for helping people, and I love what I do. Call or email today and let me make this the easiest PCS yet!

Charleston AFB Real Estate, Charleston AFB Real Estate For Sale, Charleston AFB SC, Joint Base Charleston, Joint Base Charleston Real Estate

Posted in:General
Posted by Jodie Ford on March 8th, 2011 8:41 AM


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