Mike’s Real Estate Show

First time homebuyer wants to know if holding for 4-5 years is a good idea?

You pose many questions. If you are indeed a short-timer for a real estate purchase you must address a number of issues. What is the performance of the market in the area you reside? Has it been flat for the past few years? Going up at 5, 10, and 15% per year? Going down??

You may wish to hook-up with a fairly aggressive adjustable rate mortgage program with a fuse about 5 years out. A 30 year fixed rate loan will have a balance approaching 98.9% at the end of 5 years. A 15 year amortized loan something like 85%. An interest only loan -0- equity build up but total write off (contact CPA for how this would apply to your situation). But why do you wish to buy? I think any first timer in this market should ask this question of them and be very realistic. If you’re thinking you’ll make a profit in 4-5 years guess again! But if you want to get out of the renting game and move into a “HOME” then buying is always a good plan. Sit down with a solid mortgage professional and explore your options in conjunction with an equally good Realtor. Remember–”the best laid plan of mice and men oft go astray!” Good luck!