When you do the math, you’ll see that buying a more expensive house at a lower interest rate is cheaper than buying a less expensive house at a higher interest rate. Consider this; If the loan Amount is $175k at 5% the payment will be about $939.44 vs 6% the payment will be about $1049.21 or for a loan amount of $150k at 6% will be $899.33.
With this is mind, you might want to call a lender to see what interest rate you qualify for and what the payment will be. There are a lot of good deals out there with so many foreclosures and short sales on the market. I’ve heard from a few people that Short Sales are getting easier but I haven’t seen it. I’m still selling them but I do warn my clients not to expect anything fast.
Downtown Phoenix has some great deals in the condo market. You can get nice 2 bedroom and 2 baths for less than $100k. Even though the first time home buyers tax credit has expired it’s still a good time to at least look into buying a home in Phoenix.
You also might want to just search through MLS. You can search by zip code and check out different areas of the valley. RooPho Realty sells real estate all over the valley so feel free to call us with any questions in any part of town.