Is now the right time to buy a home?
House prices as well as interest rates have hit their bottom and are now on the rise. Real estate remains affordable today but how long this affordability will last is uncertain. If you are in a good position with your finances, have job stability, and are happy with your current location, buying a home sooner rather than later may save you money in the long run.
It is still a good time to buy a home. While increases in interest rates do bump up your monthly payment, the payments can still be manageable. As an example, a $200,000 loan at today’s (July 10th 2014) rates would be about $70.00 more per month than when rates were under 4% (APR 4.135%). This $70 increase can be managed into most buyers’ budgets, even if it takes a small lifestyle change.
While rates are higher than they were earlier this year a mortgage rate in the 4% (APR 4.135%) range is still an attractive rate to finance a home with. If you have any home financing questions or are in the market to purchase or refinance a home please don’t hesitate to contact me.