Great Time to Buy a Home! Interest Rates Are Still Low!
If you're considering purchasing a new home, now is the time to act. Today's interest rates on mortgages are at an unprecedented low. If you look at the average rate for the last 30 years, these low rates are phenomenal. The cost of housing is also down, but like mortgage interest rates, will be climbing soon. Smart shoppers take advantage of this fertile market that will allow them to buy a home without spending a fortune on interest rates.
You should never decide to buy a home based just on mortgage interest rates or the price of the house, but if you're considering buying, finding the most beneficial time to act can produce huge savings. If you haven't already calculated the price of the home you can afford, now is the time to do that. Don't forget to include things like insurance and property tax when you're doing the calculation. Maintenance cost should also be budgeted into this amount. If you've been an apartment dweller previously, it's a new experience to pay for everything that breaks.
Your credit score plays a major role in the interest rate you pay for your home, amount the bank will lend you and whether you'll even get a mortgage loan. Check your credit report to insure there are no mistakes. Once you've begun to shop for a preapproved loan, until after your home closes, don't take out any new credit obligations or make big purchases that could dramatically affect your score. Remember that the higher your downpayment, the lower the interest rates.
The location you select also makes a difference in the interest rates. The rate varies from state to state, but also between cities and rural areas. You'll find many online sources where you can check the interest rates for your location. You simply insert your zip code first. You'll probably find they vary from the national average, but still be lower than it has been in years. While adjustable rate loans might sound inviting, because they're extremely low right now, your best bet is a fixed rate that won't go up as interest rates rise. The adjustable rate loans is better in times of high mortgage interest rates, in this low rate environment, stick with fixed loans.
When you're comparing rates, don't forget points. Sometimes paying points can be smart, but other times, particularly if you're going to live in a home for a shorter time, it's not always the best. This is also part of the cost of the mortgage and should be factored in when comparing rates. If you find the best lender for your area, don't forget to get preapproved before you start shopping. Preapproval means that you'll be able to secure a loan with that lender up to a specific amount. It helps you keep your visits to homes that are within your budget and assures you that you'll be approved when you find the perfect home.
Look for a program that might help you get a better rate or lower down payment. VA loans, first time home buyers, FHA loans and USDA loans are the most well known. Some of these allow for a lower down payment or lower interest rates. Others may help pay closing costs.
Finding the best possible interest rate is important, but don't forget, you also have closing costs. Find out ahead of time the cost of closing early and insure you have adequate funds on hand. Getting a new home is exciting and choosing the best time to buy is important. There's no better time than now, when interest rates are at an all time low.
Cliff Johnson
Solid Source Realty
www.stonemountaingeorgiahomes.com
(678)495-6050
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