Okay, you missed out on the tax credit. Maybe you weren’t ready to buy then. Maybe you looked but just couldn’t find the home you wanted. It doesn’t matter. The tax credit was always “gravy”. The real meat and potatoes is that this is the best time in years to buy a home, both from the stand point of price and interest rate.
For that matter, if you waited to buy until now, the interest rate is even better than it was during the tax credit time.
Example, on a home that cost $175,000:
@ 5.25% interest on a 30 year loan, the principle and interest = $966 per month
@ 5.00% interest on a 30 year loan, the principle and interest = $939 per month
@ 4.75% interest on a 30 year loan, the principle and interest = $912 per month
The first change in rate would give a savings over the life of the loan of $9720, already more than the tax credit. The second change in rate would give that buyer a savings over the life of the loan of approximately $19,444!
But don’t wait too long. Interest rates won’t stay low forever. And prices will begin to edge back up. The best time to buy a home is NOW! And the worst thing to have to admit to yourself is “If only I had bought back then.”
Tags: buyers, buyers' market, mortgage, price, real estate
