Pay attention to interest rates

"It is not in a buyer's best interest to try to time the real estate market to your advantage. If you wait for lower prices and the interest rate increases, this will cost you more over the life of the loan. For example, if you took out a $280,000, 30-year fixed rate mortgage at 5.5 percent, your monthly payment would be about $1,589. When the interest rate is raised to 6.5 percent, that same monthly payment will only get you a loan of about $250,000." Norm Marcioch, Prudential Douglas Elliman Real Estate, Sayville.

INTERVIEW BY LAURA MANN

August 31, 2007