WAITING TO BUYER A HOME COULD COST YOU

By Jeffrey Kagan, Broker-Owner, KP Edgestone Realty

Most of us groan when we hear where mortgage interest rates are these days, hovering close to 7%. Could be that we were spoiled when only a few years ago those rates were below 3%. The higher rate could make a buyer hesitant to get off of the fence from renting, but consider that paying 7% is nothing when you are renting and paying your landlord 100%. Many buyers struggle to save up for a down-payment thinking they need 20% down, but there are plenty of products out there that will work with as little as 3% down for a conventional loan, 3.5% for an FHA loan and no-money down for a VA loan for a buyer who has served in the military. The best way to know if you’re ready to buy a home, or if you’d just like to know what you need to do to prepare, is to speak with a trusted lender.

Mike Schwartz, Vice President of Mortgage Lending at Guaranteed Rate

Affinity has a great expression, “Marry the house; Date the rate.” Schwartz says, “Right now, a 30-year fixed rate is hanging around 6.75%, which historically, is very low. We believe that rates will find their natural level around the 5% mark once the fed stops manipulating the cost money. Even with rates where they are, we have at most a 3 months supply of homes with the average days on market at about 16. When rates go down the demand side will only intensify driving prices and competition even higher.” The perfect time to buy a house is right now. Waiting will only cost you more. Whether you are looking to buy or sell, contact a real estate professional to guide and educate you through the process. Don’t wait! No time like the present!