As we all know, interest rates are at historic lows and will inevitably go up some day-maybe not in the next few months, but probably within the next 12 months. So, if you buy a $1MM property now, put 20% down and lock-in a 4.5% 30-year fixed interest rate, your payments will be $4,053.48\/mnth. If interest rates climb to 5.5% and you want to keep your monthly payment around $4,000, then you will only be able to buy a $900K property ($4,088.08\/mnth.). Also, inevitably, because of simple supply and demand economics of Nantucket real estate, prices are going to go up at some point. So, if prices and interest rates go up in tandem, your purchasing power gets a double hit; you get less leverage with the interest rate and you get less property for your money. Sure your down payment will be more for a $1MM property than an $900K property, but it’s not like the extra $20K you put down disappears-it becomes equity in the property that hopefully appreciates (more than likely it will and at a faster rate than if the money was in a bank account). I’m no rocket scientist, but seems to me that if you have any extra money lying around and you can qualify for a mortgage, right now is an amazing time to buy real estate, especially if it is on Nantucket.<\/p>\n","protected":false},"excerpt":{"rendered":"
As we all know, interest rates are at historic lows and will inevitably go up some day-maybe not in the next few months, but probably…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,10],"tags":[],"class_list":["post-233","post","type-post","status-publish","format-standard","hentry","category-local-real-estate-market","category-real-estate-news"],"_links":{"self":[{"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/posts\/233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/comments?post=233"}],"version-history":[{"count":0,"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/posts\/233\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/media?parent=233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/categories?post=233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jpfco.com\/dir\/wp-json\/wp\/v2\/tags?post=233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}