Buying Out of State

Home prices in our area only seem to slow down long enough to catch their breath, and then take off higher again! The recent rise in home mortgage rates, albeit modest, may put a slight damper on it, though. This increase in the home equity that those of us who are lucky to already own is nice but, what about first time homebuyers, or an investment property?

How about out of the area or even out of state? We are currently helping 2 clients with out of state purchases. For those who get our quarterly newsletter, or read it on our web site (www.mountaincoast.com) they will know how much more house can be bought for the current Santa Cruz median price! People who buy rentals in other states find that many times the rents cover their monthly payments. This is new and different for an investment house that is bought here.

To clear up a common misconception, you don’t have to already own the home that you live in order to buy a rental property. The rental house can easily be your first time purchase. Or, as one couple is doing, they are buying their retirement home now before it gets too expensive for them to afford. While they are waiting to retire, they can rent it out if they so choose.

If this approach interests you, give us a call or read our latest newsletter online for more info.

Current rates for mortgages under $359,650 as of 3/21/05 (a.m.) are:
(rates quoted are for 0 point loans)
30 year fixed: 5.875% (APR 5.96%) payments are $2,127.47/mo.
15 year fixed: 5.5% (APR 5.64%) payments are $2,938.64/mo.