If you are on the fence about purchasing a home, take my advice, as well as real estate agents' near and far: NOW is the time to buy!
"Why?"...you ask. Well, let me explain.
1. Interest Rates are STILL Low - Check it out!
The most obvious reason you should buy a home now is that interest rates are still extremely competitive. While they aren’t historically low as they were a couple years ago....they’re still in the high 3%’s for 30-year fixed mortgages and the high 2%’s for 15-year Conventional Loans. (See Above.)
Good things tend to come to those who wait....but, not in this case. Rates will change. They will go up. They always do.
In fact, mortage rates are predicted to rise at least 3 times in 2018, with finance experts claiming that a 30-year fixed mortgage might even reach 5% by the end of next year. Ouch.
Now, let's put that in money terms. Let's say you receive a 30-year conventional loan for $300,000. With today's rate of 3.75%, the total interest you would pay over the life of the loan would be $200,164.
Let's say you decide to wait to buy until the end of 2018. With a rate of 5%, with the same loan for $300,000, you would be paying $279,770 in interest. That is a difference of $79,606.
Can you imagine what you could do with an extra $79k? That would buy quite a fancy car. Just sayin.
So, basically, securing a lower rate on a mortgage loan will save you thousands and thousands of dollars in the long run.
2. Home Prices are Rising
Unlike ten years ago, home values and prices are on the rise.
In fact, according to Zillow, home values in Orange County have risen over 4% in the past year. They are expected to keep on rising; therefore, if you chose to wait to buy, you will be spending more money for the same home.
Why would you wait and end up spending more money, instead of buying now and gaining equity in a home?
So, either you grab the steer by the horns now and gain over 4% in equity on your investment, or end up paying that much more for the same home in a year from now.
Hmmmmm....
Let me leave you with this, if you buy now instead of waiting, you will get more bang for your buck and end up with more return on investment.
Lower rates and lower house prices= happy buyers. I like happy.
Emily Benner
Real Estate Specialist
Keller Williams - CalBRE 02031182
This email address is being protected from spambots. You need JavaScript enabled to view it.
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