Don’t Miss Out On Cheap Money! NOW Is The Time To Buy A Home
It may sound strange, but money is “cheap” right now. When it comes to mortgages, the interest rates continue to remain incredibly low… and wise people are taking advantage their affordability. In fact, CNBC recently reported that mortgage application volumes are continuing to increase due to the lowest interest rates in three years. But these rates will not last forever.
On Yahoo Finance, real estate maven, Barbara Corcoran, shared this tip: “Take advantage of the cheap money. We’ve had it for so long that you start to think it’s your American right to have that kind of money. It’s a ridiculously low-interest rate…so if you don’t take advantage of the market now, when will you?”
There’s no better time to invest in a home than now. So consider the following:
Savings on interest
With such low interest rates, you can save quite a bit of money over time. With a $400,000 loan, you can easily see what a difference a 4.5% interest rate has over a 2.75% interest rate (not including property tax, PMI, extra principle payments, etc.):
Mortgage InterestMortgageMonthlyTotalTotal Interest
Amount Rate Period Payment Cost Paid
$400,000 4.5% 30 years $2027.00 $729,626 $329,627
$400,000 2.75% 30 years $1633.00 $587,867 $187,867
That small increase from 2.75% to 4.5% may not seem like a lot but when you break it down, that little bump equates to $141,760 in savings over the life of the loan.
It’s ok to buy before you sell
It’s not as crazy as it sounds. Home prices are rising faster than mortgage rates are dropping, so if you find your dream home, buy it! With it being a seller’s market right now, your current home should sell quickly. Besides, the low inventory of available homes could leave you without a place to live — quite a scary thought. Also note — people are feeling more secure with their jobs and are in the mood to buy. With buyer demand as strong as it is and home supply as short as it is, homes may be less affordable a year from now. So seize the moment, buy now and simply price your current home right to get a quick sale.
Sell now so you can buy
If you want to carry a bit less risk, go ahead and work with an agent to sell your home now. That way you’ll be in a better position to buy. Since it’s a seller’s market, it will be no surprise to see bidding wars on the best available inventory. Selling now offers a nice advantage, as your offer will certainly get the seller’s attention if it’s not contingent on the sale of your current place.
Gain value by trading up
Do you have a growing family and need more bedrooms? Want to downsize without compromising on luxury? Or maybe you are thinking of upgrading your house to experience resort-like living every single day? These might all sound like expensive budget busters, but the ultra-low mortgage rates offer buyers more affordability on higher-value homes. Even though home prices are now starting to rise a little, wage increases are helping to offset that. If you act quickly, you can extend your purchasing power more than ever, offering you a much better ROI opportunity on your next home purchase.
Of course, nothing last forever. Interest rates will go up and home prices will continue to rise, so hop off that fence and get your next new home now. Who knows, you may discover your dream home is right here at Harbor Club. Take a look. Check out our stunning new home inventory and our beautiful resale homes and call Kathy at (706) 454-7042 for a personal tour. We can’t wait to introduce you to your new home!