A note from Matt Webster at Suntrust Mortgage: Lately there has been a lot of negative press about the real estate market, but there is always a silver lining to every situation.  The obvious positive spin on today’s market is that everything is on sale.  With prices and interest rates at  these extremely low levels, now is great time to buy.   This is really nothing new, but I believe it is worth repeating.

Big savings on Hilton Head Real Estate

Based on a Google search I did this morning, the average price of a single family home on Hilton Head at the peak in 2006 was $611,000.  In March of 2011 (according to the  article I read this morning) the average price has dropped to $287,000.  A comparison of mortgage rates reveals a similar decrease.  That average 30 year rate in 2006 was around 6.75%.  Today our 30 year fixed rate is around 4.5%.   In 2006 if you purchased a home for $611,000 and took out an 80% loan at 6.75% your monthly payment would be $3,172.  Today, based on a purchase price of $287,000 with 20% down and a rate of 4.5% the payment would be $1,519.

Buy Now, Get More

This is a huge benefit for first time homebuyers who can actually own a home for less than they are paying in rent.  A second home buyer who plans to put their home on the rental  market when they are not using it will benefit from much better cash flow.   The amenities of Hilton Head such as great golf, beautiful beaches and wonderful weather have not changed…just the price.

Matt Webster Mortgage Loan Officer NMLS #659164

SunTrust Mortgage Inc. One Lafayette Place Hilton Head Island, SC 29926

843-342-8012 office 843-384-3111 cell 843-342-5515 fax

matt.webster@suntrust.com