"If you wait until you see the robin, spring is over." Warren Buffet
You may be sitting on the sidelines waiting for the right time to buy a home. Here are some reasons you shouldn't wait.
- Interest Rates. Today's record low rates are under 5% for most loan types, with jumbo loans and those for investment properties slightly higher. We haven't seen rates this low since Freddie Mac started tracking them in 1971. The federal government has been injecting $1.25 trillion into mortgage-backed securities to push down mortgage rates, but that money is set to run out next spring, and rates are expected to go up.
- Home Prices. With median home prices bouncing around all-time lows, there is no reason to wait. Think about this: "even a 10% decrease in home prices is immediately nullified by a mere 1 percent increase in interest rates on a 30-year loan," says Gary Keller.
- Tax Credits. The government has extended the $8,000 first-time home buyer credit through April 30, 2010, and has added a $6,500 credit for repeat buyers. Read about it here.
- Tax Benefits. When you purchase a home, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. In addition, you can deduct mortgage interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up. Finally, when you sell the home, as an individual you can earn up to $250,000 and pay no taxes on it, and as a couple, it's $500,000. Learn more.
- Timing the Market. It's ironic that when prices were escalating in the seller's market a few years ago, buyers were clammoring to buy! No one can time the market, but statistics show that the worst is over, and we are bouncing around the bottom. The time is now to purchase a great value.
For more information about buying a home in today's market, contact me.
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