Ozaukee & Washington County Real Estate

I remember when I first heard the term "strategic default." It left me scratching my head. People intentionally walk away from their mortgage? They stop paying their mortgage even though they are able to??

I put that thought out of my head. It made me angry that people would choose to disregard that responsibility. They didn't lose their job. They didn't incur unexpectd medical bills. They simply chose to walk away. Surely I wouldn't have to deal with that in my market.

Fast forward a couple of years. I've seen and heard about this behavior time and time again in my market, and it angers me even more.

How can it be okay to stop paying your mortgage when there is no change in your income?

How can it be okay to walk away just because you're upside down on your mortgage?

How can it be okay to brag to others that you are living "for free" in your home until the sheriff shows up on your doorstep?

How can it be okay to just abandon your property?

How can it be okay to flaunt that you are saving up thousands and thousands of dollars for your next house?

What happened to responsibility? What happened to pride? What happened to accountability?

How can this be okay?

I recently started working with a buyer who, after renting for a while, is looking into purchasing a home for himself and his kids.

During one of our conversations, the issue of financing and the importance of getting pre-approved came up. I "reminded" him that this is a great time to buy because rates are around 4.25%. His response?? "You're kidding!!! Are you serious?!?"

Oops. I assumed everyone knew that mortgage rates are as low as they are. What a lesson I learned! Note to self -- just because I'm wrapped up in the world of real estate and short sales and interest rates and foreclosures and inspections every day, doesn't mean the average consumer is.

So in case you hadn't heard -- RATES ARE GREAT!

What does that mean for you if you're thinking about buying?

It means that if you were looking at a $200,000 mortgage, your monthly payment would be approximately $984. That's based on a 30-year fixed loan at 4.25% interest. (Note that this does not include taxes and insurance.)

For a long time, we saw interest rates in the 6% range, and everyone thought that was great -- which it was! But your monthly payment (principal and interest) would be about $1200 based on a 6% interest rate --  $200+ more than what you'd be paying now. Spread that over 30 years -- that's $72,000 more that you'd be paying.

Have I got your attention? Then go talk with your lender and see what financing options are available for you. Take advantage of these jaw-dropping rates.

It really is a great time to buy. Really!