Right now is just about the best time ever to buy a new home. I say this because we are in a very unique position right now. Home prices have been steadily rising. Normally higher home prices would price people out of the market, but unlike years past the growth is at a much safer pace. It’s also a sign that consumers are more confident as they are more likely to buy a home, and spend more to boot. While you might have been able to take advantage of rock bottom pricing a few years ago you now have the peace of mind of a steady and growing economy. If you have been renting the past several years because you were waiting for home values to bottom out then it is safe to say that time has come and gone. Make no mistake, higher home prices aren’t the only positive factors involved.
Consider that interest rates are at all-time historic lows. The combination of affordable home prices coupled with low interest rates make this point in time a buyers dream! Rates probably bottomed out last year, but with all the uncertainty in the global economy there has been a recent dip yet again. In fact, this might be the last interest rate dip we see for a while. The question when taking out a new mortgage is whether you obtain a variable rate loan with a specified term, or a fixed rate loan that doesn’t change until the balance is paid off. While anything is certainly possible, this is one of the times I would err on the side of caution and would lock in the ridiculously low rates we are experiencing right now. Look into a fixed rate mortgage with NPBS to see just how affordable the loan is for you.
As I said before, you will want to know how affordable the loan is for you. After you lock in your rate, and find the house you want, look at what your monthly costs are going to be. While this is the ideal time to buy you also don’t want to stretch yourself too thin. There are homes on the market across all price ranges. Even if you can afford the monthly loan payment you will need to keep in mind all the other expenses that come along with home ownership. Your monthly utility bills can really add up, especially during peak seasons like summer and winter. Then you have your cable and internet bills as well. Some areas even charge a fee for trash removal and recycling. As you can see there lots of expenses to consider.
