4 Reasons To Buy Now
Here are 4 Reasons Why Right Now is a Great Time to Buy:
1. Interest rates on home loans remain at neer historic lows.
The average rate of a 30-year fixed-rate loan over the past 35 years is 9.2%. Rates are much lower today. Click here for the current rates. (Source: Freddie Mac, January 2008)
2. An increase in rates can significantly decrease the affordability of a home.
For example:
A monthly mortgage payment of $2,000 at 6% translates to a total loan amount of $333,000. If that rate jumps to 8% the purchasing power drops to $273,000.
3. Home ownership is a solid long-term investment.
Over the past 30 years, national home prices have appreciated at a 6% average annual rate. Though sharp variations have occurred, the typical home has increased in value. Buying a home will help you reach your financial goals; renting will not. (Source: OFHEO, 2007)
4. There is no time like the present.
Though home prices have declined in the past couple years, history has shown us that prices recover. In the early 1990's Los Angeles recognized losses for six consecutive years. The typical home bought at the peak of the mid 1990's fell about 22% in value. Yet, by 2007, the typical home was worth 268% of its value in 1990. (OFHEO, 2007)
