Quote:
Originally Posted by ThirdOfFive
It isn't just price that is the determinant. Interest rates have as much or more to do with the slowdown in sales, particularly for those who cannot afford to pay cash for a home here.
Some rough-and-ready examples (courtesy of mortgage calculator website:
$500,000 home, 20% down, interest rate 7.5% = monthly payments of $2796.86
$600,000 home, 20% down, interest rate 2.5% = monthly payments of $1896.58
$700,000 home, 20% down, interest rate 2.5% = monthly payments of $2,212.68
These numbers don't give an exact figure, but are ballpark; they also don't include things like insurance, bond, etc., which raises the monthly costs. But it is a good approximation.
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Mortgage rates don't really apply in the Villages, because the majority of homebuyers don't have a mortgage. This is their retirement home - which means they're moving from somewhere else. Supposedly selling their previous home, and using the proceeds to buy their Villages home, and living off their retirement income.
Though there are people who get a mortgage here, it's not the norm.