Buyers frequently ask Realtors when the best time is to buy a home. Most experienced agents and mortgage lenders agree that you should buy a home: When you’re tired of renting and want to own a home of your own.
When your job is stable and your income will support the mortgage payments and other costs of home ownership. Many home buyers who decide to wait for interest rates or house prices to hit bottom often end up paying more.
It’s difficult to know when rates will drop and for how long, or when house prices will bottom out and begin climbing again. A few years ago, when interest rates dropped to within the 5 percent range, it triggered demand and home prices shot up overnight.
Any gain you might realize by waiting for rates to go down even further would be more than offset by home prices going up. For example, let’s say you find a good deal on a house priced at $275,000, but you decide to wait a bit, hoping that interest rates will drop even further before you make your move. Meanwhile, interest rates go up from 6 percent to 6.5 percent.
Related posts:
- Mistake #1: Attempting to Get the Best Deal by Waiting for Home Prices or Interest Rates to Bottom Out Part (2) That means a payment of $1,648.76 on $275,000 at 6...
- Mistake #3: Buying a Home Before You have Sold Your Current One Part (2) Unfortunately, their old home needed some work to make it...
- Mistake #3: Buying a Home Before You have Sold Your Current One If you own a home and sign a purchase or...
- Mistake #4: Alienating the Sellers, Thereby Losing the Deal Buyers often say and do things when dealing with sellers...
- Mistake #9: Purchasing a New Home on Impulse Many new home buyers fall into the trap of going...
