As we move into 2011 interest rates continue to remain low. The National Association of Realtors' Pending Home Sales Index reports that pending homes sales rose in November by 3.5 percent. With interest rates as low as 4.6%, what better time than the present to purchase a new home?
Buyers across the country are taking advantage of the opportunity to lock in low monthly payments that are sometimes lower than your average monthly rental fees. This also gives buys a chance to improve upon their credit history will building up equity in their home. However, many homebuyers are still skeptical due to the economic downturn in the US. But the coming year offers the promise of the creation of new jobs which will help stabilize the economy. For homebuyers who are still hesitant due to fear of losing their jobs or defaulting on their loans, economists suggest that homebuyers purchase a home that is equivalent to one week’s salary. This prevents the homeowner from getting in over their head in the case of unemployment or financial crisis. Homebuyers also need to take into consideration other bills such as taxes, insurance, and monthly maintenance fees when setting their budget for their new home.
Low interest rates also allow current homeowners to take advantage of the equity they have built up in their homes. Instead of relying on credit cards or emptying out savings accounts, many existing homebuyers have found that initiating a refinance or home equity loan at a fixed rate is a much better move. New homebuyers can add this advantage to the list of reasons why homeownership is a smart investment.
What many of the skeptics don’t realize is that there are many reasons why buyers sometimes default on their loans. Having a clear understanding of how much you can afford before buying a home can determine whether or not buyers default on their home loans. Having a Realtor that is well versed in current market trends can take the fear out of buying a home, and allow you to take advantage of the low monthly payments now available.
For more information on how you can take advantage of these historically low rates contact David Lever at 252-714-8827
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