House Hunt: It's the Cost, Not the Price

For those who want to buy a home but are waiting for the prices to drop further, keep the following in mind. Prices may drop, but interest rates will rise from their current historically low levels. Check an amortization book from ten years ago. These handy little books included charts that would allow buyers to check how much a monthly payment would be depending on price and interest rate. Ten years ago these book would included calculations for interest rates up to 21.5 percent. The lowest rate was 4.5 percent. Right now, the rate for an conventional loan with a 10 percent down payment is 5.25 percent.

That means that the monthly payment for a $300,000 home with 10 percent down at 4.5 percent would be $1,363. If the price of the house dropped 10 percent but the interest rate rose only by one percent the monthly payment would rise ­to $1,373.  If interest rates increased and prices remained the same or rose, the difference would be even greater. When buying real estate, remember it’s not just the price, it’s the cost. The differences in this example may seem small, but over the life of the mortgage, waiting too long to buy might end up costing a lot of money.  

House No. 1: 1077 Sibley Memorial Highway #109, Lilydale

Listed by: Coldwell Banker Burnet

Price: $169,900

Taxes: $1,224

Association dues: $387

Description: High rise condo; two bedrooms, two baths and 1,925 finished square feet. Lots of extras come with this beautiful updated one-level walk-out condo. Start with the Mississippi River and city views from the porch, the formal dining room, the large gourmet eat-in kitchen, hardwood floors, private exercise room, fireplace and the sun room. Add the shared amenities, included deck, tennis courts, hot tub, sauna, party room, a shared exercise room and heated underground garage with your own assigned parking space. There is a condominium assessment for improvements.

House No. 2: 1101 Sibley Memorial Highway #512, Lilydale

Listed by: Coldwell Banker Burnet

Price: $174,900

Taxes: $1,841

Association dues: $502

Description: High rise condo; two bedrooms, two baths and 1,558 finished square feet. Immaculate end unit condo faces the south east for lots of sunlight. There’s a large office, eat-in kitchen with a new floor and silestone countertops. Natural woodwork, hardwood floors and an assigned parking space in a heated underground garage plus stunning views of the Mississippi River from the balcony adds to the ease of living. Shared amenities included an indoor pool,  saunas, ping-pong tables, party room, two exercise rooms and much more.

House No. 3: 784 Creek Ave., Mendota Heights

Listed by: Counselor Realty

Price: $209,900 Taxes: $1,754

Description: One story single family home; three bedrooms, three baths and 1,830 finished square feet. Comfortable as can be, this beautifully maintained corner home has updates including furnace, air conditioning, windows and gutters. There are wonderful touches, too including a beautifully landscaped yard with a sprinkler system, a patio, hardwood floors and a wood burning fireplace. The garage is heated and insulated so you’re car will start after a cold night.  Mendakota Community Park is within a few minutes walk.

House No. 4: 195 Stonebridge Rd, Lilydale

Listed by: Coldwell Banker Burnet

Price: $995,000

Taxes: $11,002

Association dues: $375

Description: Twin home; three bedrooms, two baths and 4,376 finished square feet. This large, beautiful twin home is a masterpiece of architecture in an exclusive gated community. Enjoy the open design with a great room surrounded by windows giving you stunning views of the Mississippi River and Crosby Farm Park. For the epicure, there’s a dream kitchen as well as a main floor laundry and a large deck and patio for summer fun. In colder weather,  you’ll appreciate the second floor gas fireplace and heated floors. This is a rare opportunity—you can own this for under a million.

House No. 5: 1729 Trail Rd., Mendota Heights  

Listed by: Coldwell Banker Burnet  

Price: $849,427

Taxes: $6,151  

Description: Four or more split level single family home; five bedrooms, five baths and 5,843 finished square feet. Exceptional design and attention to detail makes this one-of-a-kind home extraordinary. The two-story living room, a kitchen made for the home chef, white brick fireplace, walk-in closets, balcony and skylights are just some of the detail the owner of this home will enjoy. Add to that a beautiful formal dining room, eat-in kitchen and a breakfast area that will make this home one your friends will envy. The lower level includes a very large family room, two bathrooms and private bedroom.  Outside a second story deck overlooks a patio and beautiful fenced yard. Simply beautiful.