For those among you wondering what your potential purchasing power is for the rent you are paying, we have just the number crunching for you. We don’t blame you if you’re starting to balk at today’s rental prices, as so many of the buyers with whom we’re working are doing.
Below, therefore, you will find an approximation of what your net monthly payments could afford you if you were to pull the trigger and buy, assuming a 4.25% 30-year fixed interest rate and 20% down:
$3.5k = purchase of $900k (a 1-bedroom condo or a small 2-bedroom co-op)
$5k = purchase of $1.35M (a small 2-bedroom condo or a beautiful 2-bedroom)
$8k = purchase of $2.25M (a nice 3-bedroom condo or a beautiful classic 6 co-op in a prime location)
$14k = purchase of $4.05M …
Clearly, this purchasing power would be even higher if you were to choose an ARM as a financing vehicle, let alone an Interest Only ARM for those bonus-heavy among you.