I can hear it now. Someone out there is saying “Come on Scott, you’re just saying that to get my business. With all those unfortunate people losing their homes, how can now be a good time to buy?”
Unfortunately for them, the answer is because of that, not in spite of it.
First, let me explain why now…
1. Rates are at near historic lows. Although they have increased a little over the past couple weeks, they are still very good. Even for the no money down products. Since the government is artificially keeping the rates down by their subsidies which are due to end soon, we look for rates to increase. I don’t see us getting up to the 7 or 8% range, but we could be in the 6′s. While not a huge jump, it could equate to hundreds of dollars a month more in payments, or for those who are maxed out on loan-to-value, being approved for a lower priced home.
2. The First time / Next Time Homebuyer tax credit are worth $8,000 and $6,5000 respectively for those who qualify. While not THE reason to purchase now, it does sweeten the offer. To receive this, you must have a written contract in place by April 30 and close by June 30 of this year. Careful, as time flies…
3. Because of the number of home on the market, prices are below the levels of just a couple years ago in most areas. Add the foreclosures which typically sell for less than value, and you have an opportunity to purchase and build some equity over the next few years. Yes, it is unfortunate that people are losing their homes, but the market will have to pick them up in order to stabilize the housing market. In theory, the greater the discount, the faster they will sell.
Need some more proof? Listen to Ron Isana’s interview on the Today Show.
Visit msnbc.com for breaking news, world news, and news about the economy
As your trusted adviser, I am here to help you make the right decisions when buying or refinancing your home. Don’t hesitate to contact me at 219-695-0369 or email scott@nwiloanguy.com
Scott
PS. 100% financing is still available. Ask me about it!