The election hoopla is over (finally) and the market uncertainty has subsided. This is indeed good news for anyone seeking a home loan.
Home prices are more affordable than ever and interest rates are at all-time lows. (Most) buyers are more qualified to buy homes than they have been for decades.
In the wake of the recession, the overall market has been stabilized and homes have become much more affordable, even as wages have remained relatively flat.
Looking ahead into next year, the market is likely to begin a slow increase in home appreciation. Additionally, the foreclosure supply is shrinking and notices of default are being filed less. Next year will likely see increased sales activity in resale homes and new homes at greater levels that we’ve seen in the past year.
In the future, when rates will likely be higher, borrowers will lament not acting today!
The answer is “Yes”!
I have been a mortgage banker for 22 years and have never seen a better time to purchase or refinance a home. Interest rates are at historical lows and the Federal Reserve indicates it does not plan to raise rates in the immediate future.
As a home buyer, you have more buying power now than ever before. Acting now will ensure you can purchase your most desired home for a much lower payment than in the past three years.
If you already own a home, now is a great time to do some updates or even a significant remodel. Any term between 10 to 30 years are available. If your budget would allow for a 22 year loan, I can provide you with a 22 year loan.
I can answer any quesiton you may have! Please contact me at your earliest convenience.
Whether you’re a first time homebuyer or not, when you consider purchasing a new home, there are many things to consider.
- Can I qualify for a home loan?
- Do I have a down payment?
- How much down payment do I have?
- How long do I expect to be in the home?
- What price range can I comfortably afford?
When determining your price range, it is very important to understand the relationship between the price of the home you would like to purchase and the interest rate you receive for your home loan. With current interest rates at historical lows, a buyer is capable of buying more home now than when interest rates are higher.
For example, if your desired payment is $850 per month and the current 30 year interest rate is 3.75%, the price of home you could purchase will be over $20,000 higher at 3.75%, compared a rate of 4.75%.
The Utah Assoiation of Realtors recently reported that Utah home sales rose for six consecutive months during the second half of 2011, while inventory levels were the lowest since early 2007. Given this news, now is an excellent time to consider purchasing a new home!
If there is a postive side to the decline of the stock market, it would be the recent decline of mortgage rates. When my parents purchased their first (and only), home in 1954, interest rates were not this low. With 30 year fixed rates ranging from 4.0% – 4.25% and 15 year from 3.25% – 3.5%, the time to consider a home loan could not be more inviting.
First time buyers, with good credit can still finance receive 100% financing through the Utah Housing Corporation.
Homeowner’s with a 30 year loan, at an interest rate above 4.5%, may want to consider refinancing to a 15 year term. A moderate increase in their monthly payment will save them thousands of dollars!