I can remember my parents paying around 18% on there mortgage back in the day. Truly a dismal prospect. The interest rate you pay, has a huge difference on the amount of your monthly payment for you home. In fact, not only does it affect how much you can afford, but it may make the difference whether you can purchase or not at all. Interest rates for now, continue to be at historic lows. The chart below, provided by the California Association of Realtors, is designed to help you understand how much even a small fluctuation in interest rates will affect your payment. So do yourself a favor, and don’t wait too long to buy.
With the tightening of financing over the past few years, buying a vacation home is becoming a little more difficult. For those who have the cash though, it is a good time to make the purchase with home prices as low as they are. Above is an article from the New York Times on Financing a Vacation Home. If your ready to take the plunge, I would love to lend you my services in Tuolumne County, or refer you to Realtor in a vacation home market anywhere else.