Existing home prices have fallen. Mortgage rates are at historic lows. The government-sponsored tax credits for homebuyers will end in late April. If you have been looking into buying a home, now is the time. If you wait you could end up paying thousands of dollars more, with higher mortgage rates and miss out on government incentives.
According to an article on CNNMoney.com, your biggest asset as a homebuyer right now is that fact that mortgage rates are so low. But that won’t last long. Judging from predictions made by the Mortgage Bankers Association, and U.S. News real estate writer Luke Mullins, mortgage prices are expected to rise by the end of 2010. This is due in part to the tax credits ending, which could drive up the cost of home loans. Also, increased mortgage prices are a sign of market recovery, which is expected to occur in slight degrees by the end of 2010
Mortgage rates are currently sitting at around 5.15% and are expected to rise to about 6% by the end of the year. With a $300,000 house you will be paying nearly $200 more a month in your mortgage payment if you wait. That’s an increase of just 0.85%!
For For Sale by Owners, this is great news. This means that market savvy homebuyers will be out there ready to buy, knowing that they’re going to get the best deal if they act now. The key to getting your FSBO home sold quickly will be competitive pricing. Unfortunately, many homeowner over estimate the real value of their homes. A high asking price is a sure way to turn away buyers.
Check real estate websites such as trulia.com to see where your home stands price-wise, or enlist the help of professional home appraiser to get an appropriate estimate. People like to work with FSBO’s because they know they’re going to get a good deal without having to go through all the broker’s red tape—so give it to them.
Tags: Buying a Home, Low Mortgage Rates, Selling a Home FSBO
Now is the time to act and take advatage of low Mortgage rates before they rise. The article says 200 a month in saving , that amount adds up, that is 2400 a year, with that money you could go away on a nice vacation, do a bit of home renovations, buy a new big screen LCD TV etc