Experts agree. Now is the time to buy a home. With so many homes being foreclosed on and people forced into bankruptcy, it may not seem like it, but savvy real estate investors have always taken advantage of downturned economic climates.
Right now, a 30-year fixed-rate mortgage comes with less than a five percent interest rate. That’s astounding, considering how high rates have been over the past couple of decades.
The real estate market hasn’t seen this kind of interest rate low since before the 1980s and that’s something to take advantage of.
Homeowners in a financial bind are more motivated to sell their house than they would have been a few years ago, which means they’re selling for much less than they’d like. This automatically makes it a buyer’s market.
There is also a surplus of homes on the market right now, so much so that it’s practically flooded. Houses are being listed and merely sitting on the market and buyers have their pick among the competitive home prices.
The cost of renting has also skyrocketed. With so many people forced into foreclosure and unable to qualify for mortgages, investors and landlords are upping the costs of apartment homes.
Chances are you’ve already seen the rental price hike if you’re currently renting and you’ve probably looked into buying just to get out from under the rising costs. That’s a smart move.
Even though the housing prices have declined dramatically and interest is at an all-time low, it won’t stay there.
Potential homebuyers should act quickly to get the best prices and lock in that low interest rate. Nobody knows when prices will go up again, but they most likely will not go any lower than this.
Aside from a cheap, 5% 30-year interest rate, the 15-year mortgage is enjoying less than a 4% interest rate, but it won’t stay there. The interest rate in 2012 is already projected to be 5.7%, which is one full percentage above where the interest rates are today.
The government intends to shift mortgages into the private market, which means that qualifying for a home loan will only get more difficult. If you qualify for a mortgage now, it’s time to take advantage of it.
Holding off to see where the market and interest rates head may mean that you’ll have a harder time qualifying for the same mortgage you could easily get today.
Attending open houses today is also less stressful because there’s less competition. Plenty of people may be showing up for a peek at these homes, but most aren’t in the market to buy.
With few buyers and countless sellers, you’ll have your pick of homes. This also means you may have more wiggle room to put in lower bids.
Maybe you’re not sure whether or not you can afford a monthly mortgage repayment. If so, punch the numbers with a handy mortgage repayment calculator.
A mortgage repayment calculator will let you see your prospective repayment amount based on the current interest rates. You can even figure the difference based on next year’s prospective rates.
This is a guest post