Wow! What a terrific time to invest in a home! This is like no other time that we have seen. I've been selling homes in northern Indiana for over 23 years . . . and I can honestly say I've never seen a BETTER time for a buyer to purchase a nice home.
Let me share a couple of reasons with you . . . First of all the interest rates are the LOWEST since the 1950's. Look at the chart below. Mortgages are cheap today! And when interest rates go UP, as they inevitably will. A $100,000 mortgage taken out today at 5% fixed would have a principal and interest
payment on it of $536.82. That same $100,000 mortgage taken out for 30 years but with a 8% fixed rate interest, would cost $733.76. If the buyer waits, he or she will be paying $196.94 additional each month. That could be a car payment or a student loan payment. You could take the extra $200 dollars per month and apply it to a vacation to Cancun, Mexico.
Here's another reason buyers should be buying now . . . The $8,000 Stimulas Plan. This has been extended for first time buyers (that just means that they haven't owned a home in the last three years, by the way) until April 30th. Any deals written by that date will have up until June 30, 2010 to close. Eight THOUSAND dollars. Gee whiz. It doesn't take a rocket scientist to know that THAT's a GOOD DEAL.
And as a sub-topic to that $8,000 credit .... for folks that have owned a home for the last five out of eight years, they qualify for a $6,500 credit. Yep! SIX THOUSAND FIVE HUNDRED DOLLARS. How do these "credits" work? Well, if you've already filed your federal income taxes (which you probably have) you can then fill out easy-to-fill out form (really!) to put thru an "Ammended Tax Form." The government then sends you a check. The other way you could do it is when you file your taxes this year, you fill out the paperwork to show that you qualify for either the $8,000 credit or the $6,500 credit. Easy money folks!
The THIRD reason (do you even need another reason?) is that there is an unbelievable amount of glorious, underpriced inventory out there. Prices in northern Indiana are down anywhere from 10% to 30% and there's even homes priced under that! These homes are priced below market (ask your Realtor to do a history of the home for you); they are staged to beat the band; and they have highly motivated sellers. You could not ask for more! I can show you 100 homes on the market today that are way under-priced; absolutely gorgeous; and ready for your family to move into.
I've given three excellent reasons why buyers should be buying homes today. What's holding you back? Make a move today . . . Get as much house as you possibly can (or are comfortable with) today . . . those prices and interest rates WILL increase; and the extra Stimulus money will GO AWAY.
Contact your local real estate professional today! Or call me: (574) 850-7778 (cell) Let's get moving!
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