Simple math for California first time home buyers

By
Mortgage Banker with Platinum Home Mortgage NMLS ID#283159

In school I struggled with math more than any other subject, but here's some simple math for first time home buyers even I could understand.
We all know that property values in most areas of California have dropped, but what does that means in terms of actual savings for first time home buyers?


Simple Math for first time home buyers

Comparing the cost of homeownership 2006 to 2012


 

Homeownership costs

2006

2012

Loan Amount

$600,000

$360,000

Interest Rate

6%

4%

Interest Paid

$36,000

$14,400

Property Taxes

$9,000

$6120

Insurance

$2400

$1440

Total

$47,400

$21960

 

 

That's an annual savings of $25,440!

 

These figures are for information purposes only. Estimates are based on a 40% decrease in California home prices since 2006. Property taxes based on a 1.7% effective tax rate and homeowners insurance is an estimate based on the loan amount.

 

We have helped hundreds of California first time home buyers realize similar savings and they all have one thing in common, they called us.

 

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Topic:
Home Buying
Location:
California
Tags:
first time home buyer programs
first time home buyers
down payment assistance
first time home buyer loans

Comments 5 New Comment

Anonymous
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Rainmaker
486,275
Curtis Van Carter
Napa Valley's Broker Extraordinaire in Yountville
Coldwell Banker Brokers ofthe Valley, Yountville Napa Valley

Greg

This is a great way to point this out. Hope you don't mind but I am going to compliment you in the highest way and use this idea in a future post of mine, cheers cvc

June 08, 2012 12:33 PM
Rainmaker
486,275
Curtis Van Carter
Napa Valley's Broker Extraordinaire in Yountville
Coldwell Banker Brokers ofthe Valley, Yountville Napa Valley

Greg

Just to let you know I tried clicking on your website link and got an error message from both here on AR and from a Goggle search, cheers cvc

June 08, 2012 12:38 PM
Rainmaker
232,992
David Grbich
Realtor Orange County Real Estate
Ventana Coastal Properties - www.FindCARealEstate.com

Nice post Greg - simple math that says it all. Great time to be a first time home buyer. Regards, Dave

June 08, 2012 12:41 PM
Rainer
283,089
Pete X-GRI, CDPE
Orange County, CA Investment to Luxury Property-

Greg,

Great chart to help get the point across, I think soon the numbers will be changing but still great buys.

June 08, 2012 12:46 PM
Anonymous #5
Anonymous
Greg Cook

Curtis, thanks for the comment! I think we tend to focus only a sales prices but the overall economic savings are perhaps more attention getting.

btw - thanks for the heads up, have my tech guy taking a look at the site.

Dave - thanks for stopping by. The numbers can be impressive

Pete - Of course this affordability can't last forever, but we can hope. Thanks for the comment

June 08, 2012 02:12 PM
Anonymous
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Rainmaker
243,530

Greg Cook

Mortgage Consultant NMLS ID# 283159
Questions about how you'll pay for your first home?
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