Historically low fixed mortgage rates are one reason why now is a good time to buy a home. A lower interest rate means a more affordable mortgage. And an affordable mortgage means you’re more likely to be able to afford a home that was out of the question several years ago. Lock your low interest mortgage rate into a 30-year fixed rate mortgage because rates can’t go much lower. When mortgage rates inevitably increase, you’ll be glad you acted when you did keeping your mortgage rate secure for the next 30 years. If your rent is equivalent to a mortgage payment and you can afford to buy, home ownership gives you one bonus that renting can’t – the mortgage-interest deduction on your taxes.
Another benefit to buying a home now is a kind of forced savings that comes with the payments you make towards your mortgage principal. While some argue a person is better off renting and investing the difference, many consumers lack the discipline to neither save their money and invest it nor raid their savings along the way. And there are more tax benefits that come with home ownership than there are with renting.
Now is also a good time to buy a home if the prices in the neighborhood you are interested in are relatively stable. If they’re holding their own, increasing or the pace of decline is slowing significantly, now would be a good time to buy a home. Many attractive neighborhoods don’t have much rental property. Some are gated or have strict rules against rental properties. Many such neighborhoods are popular because they are in an exemplary school district. Whatever your attraction to the neighborhood, you’re most likely going to have to buy in order to live there. And you don’t want to wait too long especially when you would most likely have much more competition for that home in a better market.
Now is a good time to buy a home if you plan to live there for more than five years. Economists say that home owners who can stick it out for five years or more before selling their home will probably ride out any downturn and come out ahead on price.
Now is a good time to buy a home if you’re retired or nearing retirement and you’ve built equity in your house and considering moving to a place where homes are cheaper. Your money will go a lot further in your new market, making this your best time to purchase a new home.
Finally, now is a good time to buy a home if you’re sick and tired of renting. Renters often find themselves at the whim of the landlord and tenants around them. Home ownership means you have more control over the heat in the winter and the noise and smells around you.
There are many reasons why now is a good time to buy a home. Working with mortgage lenders can help you to determine the mortgage rates and loan products available to help make your dreams of home ownership a reality.