The housing market has been in the dumps for a long time now as a lot of homeowners are underwater on their mortgages. There is a lot of pessimism surrounding the housing market as buyers are scared to make a home purchase right now. This is a mistake since this is the best environment in a long time for individuals that are seeking to get a home loan. Let's take a look at a few reasons why it is smart to buy a home now.
Low Interest Rates
The last few years have been marked by incredibly low interest rates on mortgage loans. Borrowers have been able to get loans with interest rates below 5%. The federal government has deliberately kept interest rates low to encourage home buying by borrowers with good credit. This makes now a great time to get a fixed rate loan. You can take advantage of this low interest rate environment and lock in a low rate for the next 30 or 40 years. The result would be major savings in interest payments throughout the life of the life.
Low Housing Prices
Housing prices have contracted over 20% throughout the United States. Some areas of the country have seen their prices drop 50% or more over the past few years. As with any market, the best time to buy is when prices are at their lowest. You may not be able to time the bottom of the real estate market but you can tell when prices are low. Buying when housing prices are low gives you the opportunity to reap the rewards of คอนโดมือสอง capital appreciation later. You will be in prime position to benefit when housing prices do finally turn upward.
Better Loan Products
Borrowers now can get much more suitable loan products than borrowers in the early 2000's. The mortgage industry has been completely reformed and lenders are matching borrowers with the right products. Borrowers today will need to have a good credit rating and a significant amount of cash for the down payment. A lot of the riskier adjustable rate and interest only loans are no longer being offered by lending institutions. These new measures reduce the risk of you falling behind on your mortgage and being foreclosed on.
Now you see why it is an attractive time for a first time home buyer to get involved in the real estate market. Remember that the best opportunities in housing are often presented during the times when things look the bleakest.
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