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659 Jefferson (3)OTTO Engineering owner Tom Roeser’s mission to improve Carpentersville’s neighborhoods is gaining momentum. Watch the Homes by OTTO interview and read the article at entitled, “One man’s fight against foreclosures in Carpentersville”:

For the past 8 years, Tom Roeser has been purchasing foreclosed houses in dilapidated condition and completely rehabbing them inside and out. He typically spends over $100,000 on each restoration and then puts the homes back on the market. Roeser’s ultimate goal is to break even.

Why is he doing it? Tom will tell you it is because it benefits OTTO employees, many of which live in the area, it benefits the community and it benefits OTTO when its large customers come to visit. According to the article, “Every neighborhood in which he has bought and rehabbed homes seems to prosper. Other homeowners see what he has done and improve their own homes. Crime has gone down too, according to deputy police chief, Michael Kilbourne.”

A Small Change in Interest Rates Makes a Big Impact on the Bottom Line

Today’s low interest rates are a great advantage to homebuyers. A small drop in rates makes a huge impact on your wallet, probably more than you think. Lower rates can make a difference in your ability to afford a home. In fact, if you are currently renting, you may find that a house mortgage is less expensive each month than what you’re currently paying in rent.

Let’s look at some examples. Let’s say you are buying a home valued at $150,000 and you’re putting $10,000 down so your loan amount is $140,000, and you’re getting a 30-year mortgage.  At a 5.5% interest rate, your monthly payment ends up being $951 so the total of the 360 payments you will make over the life of the loan is about $342,000. Now let’s look at the same scenario using a 3.5% interest rate. Your monthly payment ends up being $785 which is a savings of $166 each month. The total of the 360 payments over the life of the loan is about $282,000, which is a whopping savings of nearly $60,000. So you can see that a 2% difference in your interest rate adds up to literally tens of thousands of dollars of savings over the life of the loan.

This table outlines the two scenarios:                                                                                    

Home valued at $150,000, loan amount is $140,000, 30-year mortgage

Interest Rate

Monthly Payment

360 Payments

Interest Paid

Monthly Savings

Total Savings













This is an example. Your down payment may be different depending on which bank you use. Also, your credit rating will have an impact on the interest rate your bank will offer.

A great resource for figuring out payments: Click Here