While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer.
That means you have to take into account what your monthly payment will be, considering not only the price of the home, but also the interest rate of your mortgage.
Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of your mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters.
It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. Also the knowledge of your Realtor about the area(s) in which you are looking for a new home, what prices have done and are doing, whether the home you are looking at is a short sale or not, or foreclosure, will also help guide you as to what your best decision should be.
Interest rates are still under 5%, they are historically low, if prices drop even further, and the interest rate rises, your buying power can drop considerably.
America is based on home ownership, your landlord understands this, are you ready?
Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
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