According to the Primary Mortgage Market Survey from Freddie Mac, interest rates for 30-year mortgages have stayed close to 4 percent, and it’s believed that this will increase in the next 12 months. With this in mind, if you’re looking into buying a home in the near future, why wait and pay more in interest than necessary?
Polam FCU offers both competitive flat rate and adjustable rate mortgages with low closing costs, and our team is experienced in helping our members become homeowners. Here are four reasons why you shouldn’t wait to buy a home:
- Prices will continue to go up, not down. According to CoreLogic’s most recent Home Price Index, the cost of a home has appreciated by 6.7 percent in the last 12 months, and the same report anticipates that prices will continue to rise by 5 percent over the course of the next year. Because this rise in cost will continue to increase as time passes, there’s really no point in waiting if you’re looking into buying a home.
- Mortgage interest rates will also continue to increase as time passes. As mentioned above, 30-year mortgages will continue to go up in the next year, and the National Association of Realtors is one of several organizations that predict rates will not remain stagnant. This projected increase in rates will affect how much you pay for your home, as well as your monthly mortgage payment. To prevent this monthly increase, it’s smarter to buy now rather than wait a year when you may be paying more than you expect.
- You are paying a mortgage no matter what, so bear that in mind through the buying process. Many people who haven’t yet bought a home have waited because they may not be comfortable with the idea of paying a mortgage. But it’s important to keep in mind that no matter your living situation, unless you’re living with friends or family rent-free, you are paying for your home every month. Instead of contributing to your landlord’s mortgage, you can gain equity by paying into your own mortgage, which is a “forced savings” of sorts that you can tap into later. When you own a home, you’re the one gaining the benefits of equity, not a third party.
- There’s no better time to make a decision that will change your life. There are two things on the rise that will affect your homeownership decisions – the cost of the home and the current mortgage rate. But even if that weren’t the case, would you wait to buy a home? It’s important to take the time to weigh whether buying a home is the right choice for you and your family, but if you’re already at the point where you want to take the plunge, why wait? Visit us at one of our branches and our experienced Polam FCU team members will get you started in an experience that will change your life.