Do you have the financial wherewithal to purchase a home? Are you currently renting and on the fence gazing into the greener pastures of home ownership? Are the circumstances right for you? If so, I would like to congratulate you. So many of us wish we were in your shoes right now. You might be in the minority of those who are blessed by a rare opportunity. The opportunity is before you right now, and can’t be expected to last very long.
Housing experts recognize that while prices may not have bottomed out in all markets, those who wait may miss out on an even more significant factor. More significant than the potential decline in prices? Yes, indeed: INTEREST RATES. There’s a good chance the Federal Government will pull away from the active role they’ve had in mortgages for several decades. The Federal support for mortgages keeps things cheap. Without the Feds helping hand, the obvious short-term effect should be smaller mortgages, higher fees, higher interest rates and larger down payments, amongst other factors that make homeownership a more lofty accomplishment for the average buyer. Privatization equals PRIME LOANS. While it could take years for the effects of this transition to be realized, interest rates are rising. A single percentage point higher interest rate spells tens of thousands more dollars over the life of a loan.
You don’t have to a financial guru to recognize that historically low interest rates, home prices of a decade prior, and large supply spells opportunity for investors and homeowners alike. Of course its a calculated decision. Don’t rush into such a big commitment. Housing is an investment, not a commodity. Run the numbers, and assess your values. Currently renting? Try a RENT VS BUY CALCULATOR or contact a MORTGAGE SPECIALIST who can help you determine which makes more financial sense for you right now.
Its hard to tell when the bottom will hit in any given market. The extremely local nature of real estate makes it all but impossible. In fact, we won’t know where the bottom was until prices start to climb on average CITY-WIDE…and by this time its too late to take advantage of what many think is the opportunity of a generation. How many of us will say…”Wow, I really wish I bought my house in 2011″?
Kipp Blackburn | Real Estate Consultant | 312.730.3320 | firstname.lastname@example.org