No Comments

Following is an article about incentives being offered to Buyers such as plane tickets, cars, and big-screen tv’s. In it, they make an important point:

Say you’re thinking about buying a new home that you’re planning to finance with a 30-year, 6.5 percent fixed-rate $200,000 mortgage. To clinch the deal, the builder says he’ll throw in a brand-new, $2,500 big-screen TV. Nice. But wait – if you could instead get the builder to cut the price of the house by $2,500, you’d need to take out only a $197,500 mortgage.

Assuming the same terms, you’d end up shelling out $3,200 less in interest over the life of the loan than if you’d taken the TV. And you’d probably pay less in property taxes too, since they’re often based on a home’s most recent purchase price.

Read the article here

Written by Keith Byrd - Go to Keith's Website/Profile