Last week The News-Herald had an article in the paper from bankrate.com titled Pros and Cons of Buying a house now.
Low mortgage rates and declining home values make homeownership extremely affordable. So does that mean now is the right time to buy? It depends on who you ask and your own personal situation. Real estate is very local, it is not just a question of what state do you live in but more importantly your city or Zip Code.
One thing we do know is interest rates are hovering at historic lows. In the article it mentions, the chances of mortgage rates going up is a lot greater than the chances of them going down a little bit.
Will home prices continue to fall, well that depends on who you ask…Fannie Mae, Economists…who knows? Again, very local to your area.
An EXAMPLE of what this could mean in terms of a monthly mortgage payment helps us understand if rates rise and even if home prices take another dip, a home buyer could end up paying more for a house.
Let’s assume you are thinking of borrowing $150,000 to buy a house and are able to get a 30 yr at 4.75% and let’s say this translates into a monthly mortgage payment of $782. If you wait a year and prices drop by 10% (a little high in my opinion), you may be able to buy that house for $135,000 loan. But if the interest rates rise to 6.00%, you would end up paying $809.00 per month.
So, when it comes to mortgage rates, there has never been a better time to buy. Are you ready to buy is the question? I have several mortgage lenders I would be happy to share with you. Would you like to know what is going on in your local market? I am only a phone call away. Jody 440 221-6383.
Jody Finucan, REALTOR, CDPE
Howard Hanna Real Estate Services
cell: (440) 221-6383
office: (440) 951-2123