Have you ever heard the story about the guy who always waited until the next day because he was sure that mortgage rates would go down? He waited his whole life and died living in an apartment but with a lot of money. Doesn't that kind of defeat the purpose of saving money to buy a house? Like this guy, a lot of us are always waiting around for the best deal to come along. We're sure we can wait out the market, but we don't know that the market can last much longer than us.
Even though economies around the world are getting worse, mortgage rates are still one of the lowest they have ever been. The average rate for a 30-year fixed mortgage is between 5.5% and 6.5%. Four years ago, some interest rates were as high as 6.8 percent. The mortgage rate will always change, just like any other financial tool. The good news for many homeowners is that when the rate drops significantly, usually by 3/4 of a point or more, they can refinance into the lower rate. It's almost like being able to have your cake and eat it too!
Buying a home for your family is the best investment you can ever make. Homes are an investment that will grow in value over time. Real estate is one of the best ways to put your money to work. Even though there is a lot of news about the fallout from subprime mortgages and other things in the real estate market right now, most people who take care of their credit and finances can avoid having to deal with any of that. If you know how much house you can afford and what payments you can make comfortably, you won't end up in a report about the mortgage industry.
One thing to remember is that a dollar will always be worth less in the future. If I could give you $100 today or $100 next year, the $100 I give you today will be worth more and can buy more than the $100 I give you next year. The same is true for buying a house. If you think the market is too unstable right now, waiting to buy a house could be a big mistake. If your finances are in order and your credit is good, now is the perfect time to take advantage of the low mortgage rates and get a great deal in the real estate market.
If you know what's going on in the mortgage business, you can get a great deal on the home of your dreams.
Taking advantage of the rates that are available now can help you secure the financial future of your family for years to come. Even though you might hear a lot of bad things about the real estate market, the fact is that people who have been good with their money will do very well in the housing market as it is now. Why shouldn't you do it too?
