Mar 012012

Why Buy a Home in Midtown Tulsa Now?

Why buy now?

Here is the reponse of your Midtown Tulsa Coldwell Banker Mortgage Advisor, Elizabeth Favell, to this question for people buying homes in Midtown Tulsa or anywhere in Northeast Oklahoma.

Elizabeth_Favell, Midtown Tulsa Coldwell Banker Mortgage Advisor

Elizabeth_Favell, Midtown Tulsa Coldwell Banker Mortgage Advisor

For home buyers with a long-term housing plan, today’s mortgage rates are an incredible value as compared to even February of last year.

Last February, the 30-year fixed rate mortgage averaged 5.05 percent nationwide and today you are around 4.00 percent. If you are one of the many that have waited, you will have saved 13% on your mortgage payment. Take a look at the math :

  • February 2011 : $539.88 principal + interest for every $100,000 borrowed
  • February 2012 : $477.42 principal + interest for every $100,000 borrowed

That’s $62.06 monthly savings for every $100,000 borrowed. Mapping this to a real-life mortgage, a homeowner in Midtown Tulsa or anywhere in Northeast Oklahoma borrowing at the local conforming limit of $417,0000 would recognize savings of $259 per month or $3,108 per year.

Same Mortgage Payment ~ 77% More Home

When you buy a home, you think in terms of “monthly budget” and that’s why mortgage rates are critical to home affordability. Your purchasing power is a direct reflection of the mortgage rates of the day. As mortgage rates rise, purchasing power falls. As rates dip, purchasing power rises.

This is why your mortgage dollar goes so much farther today as compared to 20 years ago — mortgage rates are scraping rock-bottom in 2012 at levels that were previously unthinkable to economists.

Let’s say you have a monthly budget of $1,700 for your mortgage.

  • In 1991, a $1,700 mortgage payment gets you a loan size of $200,000
  • In 2011, a $1,700 mortgage payment gets you a loan size of $353,000

In other words, in 2012, for the same monthly payment, you can borrow 77% more from the bank than you could in 1991. That’s a homebuyer-friendly statistic if there ever was one.

Inflation Adjusted Home Prices Chart by

The chart above shows us that while property values rose, the affordability index dropped. With rates low and property values stabilizing, this becomes as close to the “perfect time” to buy as we can accurately estimate. No one knows when the bottom or top of any market comes until after it is long gone. Whether we are moving up, down, or laterally the forecasts say that now is the time.

Did you say even if you are trading down? Stay tuned for the next edition… you’ll be amazed by that math!

Have a great week!

Elizabeth Favell

Mortgage Advisor

918.712.4442 office

918.284.1343 cell

856.917.1274 fax


Debbie Solano

Debbie Solano is a REALTOR® and Broker Associate in the midtown Tulsa office of Coldwell Banker Select, Realtors, selling homes in Tulsa and residential acreage in surrounding communities. She specializes in horse properties, farms, ranches, and country estates, selling vacant land, building lots, existing homes, horse farms, hobby farms, and cattle ranches in Tulsa County and in the counties surrounding Tulsa. Debbie has two Masters degrees (an M.L.S. and an M.Div.) and has taken extensive coursework to acquire designations in the real estate industry. She is a Certified Residential Specialist (CRS) and currently is Chairman of the Membership Committee of the Oklahoma CRS Chapter. She is also an Accredited Buyers' Representative (ABR), a Certified Home Marketing Specialist (CHMS), and a Seniors Real Estate Specialist (SRES). In addition, Debbie is a member of the REALTORS® Land Institute (RLI) and the American Association of Professional Landmen (AAPL). She loves horses and enjoys working with clients who love gardening, animals, and country living. Many clients don't want to see their neighbors, love to see the stars and want to be close to nature, yet have to be close to their jobs in Tulsa. You'll run into Debbie cycling in Tulsa's River Parks or swimming at St. John's Siegfried Health Club. She is also a member of the St. John's Adoration Community and a member of the choir at the Church of St. Mary in Brookside. Debbie is a member of the St. John Auxiliary and volunteers as a Pastoral Care Visitor at St. John Medical Center in Tulsa. Eventually she wants to buy another horse and successfully plant a rose garden.

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