It's all the buzz; "Is it really the best time to buy? Won't I lose money on my
home if I try to sell? Won't these home prices continue to drop? Â Interest rates have stayed low for a while now, so I don't think we are in danger of missing out on a good rate." Â And so on and so forth. Â We have all heard and perhaps been a part of these conversations.
Well, a resounding and emphatic YES!! is necessary when answering the question of, "Is it really a great time to buy?" Â
Consumers have pretty much gotten used to the new rock bottom price expectation in the real estate market. Not only are home prices low, so are interest rates and buyer competition. Â Just like the bubble could not stay filled (and hence popped a few years ago), this real estate clearance sale is going to come to an end. Granted it will be a slow climb, but getting a 3.5% interest rate as opposed to a 5% or 7% sure makes a huge difference in your typical 30 year mortgage. Â For example:
Assuming a $200,000 mortgage with 20% down for a 30 year term (with tax and insurance) -Â
A 4% interest rate versus a 6.5% interest rate will save you $89,080 over the life of the mortgage. Â 4% versus 7% will save you $108,223! Â I'm no mortgage pro, but that's a lot of money!
So if you are on the fence and you want to buy, but just aren't sure
- really think this one over. Don't miss out on a great opportunity - a great financial investment really. Â And remember, it's all relative. You may not get as much for the home you are selling (if you are selling), but you are also going to get a great deal and lock in a fantastic rate if you act now.
Now go get 'em! Â :)