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5 Reasons Why Now Is the Time to Purchase a Home
If you are mulling over the idea of purchasing a home, this article is here to tell you that this is a great idea! While purchasing a home is always a good investment if you have the financial security to do so, now is a particularly good time to invest. Interest rates are low, home prices and resale homes in Pebblecreek are projected to rise soon, it is expensive to rent, and now more than in recent years mortgages are easier to come by. So what are you still waiting for? Find a great Realtor such as those at Mary Couzens Realty and get started on your home-buying journey! If you are still unconvinced, here are five reasons why now is the time to purchase a home.
5 Reasons Why Now is the Time to Purchase a Home
There are many reasons why purchasing a home is a great idea, but there is no doubt that certain years or decades are more advantageous than others. The economy is in a unique place in time at the present, with ideal interest rates and low house prices, there is nowhere to go but up. Here are five reasons why now is the time to purchase a home:
- Reason #1: Interest rates are low. While interest rates vary from place to place, you can expect around 4.25% currently. By 2015, interest rates are expected to rise to at least 5%. Over the life of your loan, the price of your interest rate can make a difference of thousands of dollars. If you are planning to buy in the near future, now is the time to get looking for a home to lock in your low interest rate.
- Reason #2: House prices are still going up. While home prices are still low, with the rebound in the economy, home prices are projected to rise over 19% in the next five years. If you are planning on purchasing a home before 2018, now is the time to get your ducks in a row so that you can take advantage of low home prices. Buying low means that you have a greater investment when it comes time to sell in a high market, so now is the time to get an even greater investment.
- Reason #3: Rental rates are still high. With the housing crisis of 2007-2008, home prices plummeted, Americans couldn’t qualify for loans, and all of this culminated in a saturated market for renters. The competition for rental homes is still stiff, and rates for renting a home are very high. You can expect to pay just as much for rent as you would on your own mortgage. Since lenders are easing up on their lending requirements, it is worth taking a look to see if you now qualify for a home loan.
- Reason #4: It is getting easier to qualify for a home loan. During and immediately after the housing crisis, lenders virtually stopped lending money to homeowners. Only those with excellent credit, steady jobs, and a sizable down payment could qualify. Today, those lending requirements are much less formidable. While you still need to have good credit, hold a steady job, and afford the monthly payments, it is very likely that you will be able to get a home loan.
- Reason #5: A home is always a good investment. For those with the means to afford a home, it is the first and best investment you can make for yourself and your family members. It is never recommended that you make yourself house poor, but a home mortgage is good debt that will build your wealth over time and allow you some degree of financial security in the near and far future.