Get Into a Bigger, Better, Nicer House Now – Before You Regret Not Taking the Opportunity

Watch on your mobile device >>

Trust me.  This is THE time to buy a house.  If you don’t believe me, read what I have to say about why it is the best time to make a move – literally.  There are obvious reasons that we all know about that are mentioned on a daily basis in news reports, talked about by industry analysts and are a part of the daily buzz among consumers.  But there are not-so-obvious reasons too.  Read on to find out exactly why now is the best time that we’ve seen in a long time to get into a bigger home, a better home or a new one if you have never owned until now.

Low, Low, Lowwwww Interest Rates and Housing Prices

This goes without saying.  EVERYONE has heard of the colossally low rates we’re seeing in the mortgage industry right now.  This goes for all types of mortgages too.  The best opportunity is to capitalize on a rate that will lock down the low rates and reduce your monthly payment significantly.

When you factor in low interest rates with the low housing prices we’re seeing in the market these days, then the savings REALLY kick in.

Down Market = Great Time to Move Up Into Something Better

While everyone is waiting for the market to improve, interest rates will continue to rise.  When the rates do end up climbing again, it will directly translate to higher monthly payments.  Seizing the opportunity that lies in obtaining financing for a low-priced home is just about the best financial decision you can make for the long-term.

The single most important thing you can do these days is to heed these mortgage rates.  As we see with the stock market volatility and US debt-ceiling situation, everyone holds their breath and expects rates to begin to skyrocket soon after.  But having an interest rate that is low can actually buy you more house today so eventual rising rates is something to be concerned about because those rates will definitely rise.  And at that point, are you going to be able to afford the house that you really want?

Here’s How Buying Up Works – Clearing Misconceptions

In a down market with a $200,000 house, by selling it now you will take a ten percent discount which means you’re leaving $20,000 on the table for your new home. But here is the part that most unsure people toying around with the idea of moving up tend to forget:  you are moving into a larger home and it will probably be worth more.  If the home you are moving into is a $300,000 home and that home also took a ten percent discount, which would have been $30,000, then that means you have a $10,000 gain.  AND you get to live in a better home.

ALSO, CONSIDER THIS:  On that $300,000 home, assuming a fixed interest rate of 4.5% over the course of 30 years, if the payment is $1,520.06, when you increase the rate by just a half percent, the payment jumps up to $1,610.46.  Conversely, if you increase the price of the home, the payment goes from $1,520.06 to $1,596.06.  What this means is that a half percent change in interest is the same thing as a 5% chance in price.  The same concept applies to different variables.  A one percent change in interest rate is about the same thing as a ten percent change in price.
~
It’s very simple.  If you can, if you want or even if you are just thinking about it – now is the single best time that many of us will ever witness in our lifetimes to buy a house at unprecedented low prices and historically low interest rates.  Just think about how you might feel if you miss the boat on this one.