05 Nov The Time is Now to Buy Your Home
If you’ve been considering purchasing a home, you’ve probably been wondering if now is a good time to do so. You’ve seen how unpredictable the world seems to be and you’re not quite sure if you should pull the trigger. Your hesitation is understandable and you’re right to wonder but now is actually a great time to buy your home.
In fact, owning a home is actually safer than renting in regards to stability. Chances are, you’ll be spending less money on your mortgage each month than you would on your rent, and if it’s your mortgage, you’re not subject to your landlord’s financial situation.
If things do get worse with the economy or if Covid and the election disrupt things for your landlord, they could be in a position where they’d have to sell the home you live in.
In addition to that, if you were to get laid off or found yourself in financial duress, it’s harder to get foreclosed on than evicted. In some states, foreclosure has to go through the court system and could take months. Your landlord could have you out on the street long before then.
Enough of the doom and gloom. Buying a home should be fun and exciting! So let’s talk about the good reasons to buy your home now.
One of the reasons that you should consider buying your home now is because of the low interest rates. Lower interest rates helps lower your monthly payments and raise your purchase price budget. Mortgage lenders are reporting mind blowing interest rates. On July 30, The Washington Post reported that according to Freddie Mac, the 30 year fixed rate average slipped to 2.99 percent. It was 3.75 percent a year ago.
Even current homeowners are trying to take advantage of the lowering interest rates. Refinance applications are 111% higher than they were a year ago, according to the Mortgage Bankers Association.
Buying now helps you capitalize financially in another way as well. Equity in your home. Whether you’re paying a landlord or paying a bank, you’re paying a mortgage. When you write that rent check each month, you’re paying someone else’s mortgage. You’re better off paying your own.
At $1,500 a month, you’d pay $18,000 per year on rent. How much would you spend if you rented for another two or even three years? Putting that money towards purchasing your own home or paying down your own mortgage would be a lot more advantageous.
The time is now to start working towards buying a home and building equity. As a real estate agent, I’m encouraging my clients and potential clients to move forward as they would if all the Covid, political and social factors weren’t happening. None of those things have affected real estate yet.
Buying a home should be based on the factors and the timing of you and your family. If those point to buying a home, then now is the time to buy a house.