Hurry up, before it's too late......
If you are like many Americans, you've been sitting on the sidelines of the housing market, waiting until "the time is right" to buy a new home. According to Money Talks News Founder, Stacy Johnson...."When it comes to buying or refinancing a house, I've got some advice. Do it and do it soon! I can't say what's going to happen in the next few months. But over the next few years, odds are home prices will increase, and so will interest rates. If you don't buy now, one day you will look back and wish you had."
We all remember the housing boom back in 2005 and 2006. Many people ended up paying top dollar for homes that they truly weren't qualified to purchase. Lenders were handing out loans as fast as applications were being filled out. Life was good for many people at that time and big cars, big houses and big loans were the way of life. Then, it happened. The bubble burst! And many people ended up losing those big homes because they couldn't afford those payments. Their options were to either walk away from their dream homes and let the bank foreclose or they did a short sale and the lenders got hit with losses.
If you have been on the fence about whether it is the right time to buy. Consider this regarding the interest rate. Many factors indicate that interest rates will continue to rise. You may be thinking, "I'll take my chances, there's not that much of a difference in payments if the interest rises 1%". Think again!!!!! Let's say for example, interest rates are at 5%. If you borrow $100,000.00 for 30 years, the amount of interest you will pay is $93,255.32 over the life of the loan. Now, what if the interest rate went up to 6%??? Can't be that much of a difference right??? That same $100,000.00 over those same 30 years, now cost you $115,838.17 over the life of the loan!!!!! That's an additional $22,582.85 for borrowing the same amouht of money for the same amount of time! Doesn't make much sense does it?
Now, you might be thinking to yourself "that's the BIG picture, I am just more concerned with my monthly payment, there's not that much of a difference when I break it down like that." Well, let's see. Your principal and interest payment at 5% would be approximately $536.00 a month (before the taxes and insurance). That payment at 6% jumps to $600.00 (again before taxes and insurance). If you are living from paycheck to paycheck like many Americans an extra $65.00 a month can really go far.
So what does all of this really mean? None of us have a crystal ball that can tell us what the future holds... however, if we look at the indicating factors, and the experts agree that home prices and mortgage rates will increase in the future, why take a chance with your hard earned money? You KNOW what the interest rates are now. You know what the home values are right now. Why not get up off the sideline and step into the homeownership game while the timing is right. Don't be on the list of those who look back and regret that they didn't BUY NOW while the time is right!
If you are interested in getting more information on purchasing your new dream home, or are curious what your current home is worth in today's market, contact John Dietz of the Dietz Team with Remax at 727-451-3530 for more information. We will be happy to help you understand the current real estate market.
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