If you didn't already care about buying while rates are low, you probably will after reading this.
It is pretty amazing how much more you can buy for your money when rates are so low. If you qualify for a $200,000 dollar home at 5% you may want to jump on it. Later, if rates go up even a little to say 6% you will only qualify for a $179,000 purchase. That's a $21,000 difference!
Now imagine you stay in the house for 10 years and let's say the home appreciates at 5.4% per year which is the historical average. Your $200,000 home would now be worth about $338,404. Your $179,000 house would be worth about $302,871. If you want to get technical you can reduce the difference of the initial $21,000 and that still leaves you ahead by nearly $15,000 or about $1,500 per year. Not to mention you go to live in a considerably nicer home during that 10 years.
Plus, if you buy now, you may qualify for the $8,000 first-time buyer tax credit or the $6,500 home buyer tax credit.
Think about it...
It is pretty amazing how much more you can buy for your money when rates are so low. If you qualify for a $200,000 dollar home at 5% you may want to jump on it. Later, if rates go up even a little to say 6% you will only qualify for a $179,000 purchase. That's a $21,000 difference!
Now imagine you stay in the house for 10 years and let's say the home appreciates at 5.4% per year which is the historical average. Your $200,000 home would now be worth about $338,404. Your $179,000 house would be worth about $302,871. If you want to get technical you can reduce the difference of the initial $21,000 and that still leaves you ahead by nearly $15,000 or about $1,500 per year. Not to mention you go to live in a considerably nicer home during that 10 years.
Plus, if you buy now, you may qualify for the $8,000 first-time buyer tax credit or the $6,500 home buyer tax credit.
Think about it...
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