Real Estate Agent Jeff Tricoli of Lake Worth Florida sees rare buying opportunities for buyers in the market for their first home due to various economic factors.
Online PR News – 02-November-2012 – LAKE WORTH, Fla. – LAKE WORTH, Fla. - Real Estate Agent Jeff Tricoli of Lake Worth Florida sees rare buying opportunities for buyers in the market for their first home due to various economic factors.
Tricoli says low interest rates have brought the "price of money" down to extremely low levels for Lake Worth real estate buyers.
"The best way to look at interest rates is to think of it as the 'price' of money. When that price is lower, as in today's record low mortgage rate environment, it reduces the overall cost of the home."
He says the cost savings can be considerable, making it an ideal time for some buyers to get into their first home.
"A good rule of thumb is that every percentage point increase in the interest rate costs the homeowner over $20,000 for the life of the loan for every $100,000 in loan principal."
Tricoli says this translates to about $60 per month on the house payment for each $100,000 in loan principal.
He says a better way of illustrating the impact low interest rates have had on the market is to compare buying power under different rate scenarios.
"When you are a first time home buyer, every penny in your housing budget counts. If interest rates were just 2% higher, the buyer who was looking at a $250,000 home could suddenly only afford a $202,000 home. That's a whopping $48,000 difference."
Tricoli concludes that first time home buyers would be wise to get into their home sooner rather than later, before the economy goes into recovery mode and launches a potential rising interest rate environment.
"In all my years in real estate, we may look back on 2012 as the best year for new buyers to get into the market."
About Jeff Tricoli
Born and raised in Palm Beach county, Jeff obtained his undergraduate and Master’s degree from Florida Atlantic University. He has been in real estate for over 10 years, and is an expert in short sales, foreclosures, and REO properties.
Jeff regularly handles investment property transactions for both investors and sellers, providing experienced advice for owners selling their home. He brings expert marketing skills as a sellers’ agent, and is a tireless buyers’ agent, listening closely to clients’ needs to find the perfect property for their needs and lifestyle.
Jeff Tricoli REALTOR®
Keller Williams Realty
Palm Beach Central
2994 Jog Rd.
Lake Worth, FL 33467