Forbes- 9 Reasons to Buy a House Now by Marshall Reddick

Paraphrased by Marshall Reddick Real Estate Network

The housing market works as a cyclical cycle that peaks and bottoms over the years. After several decades of increasing home values, we have now reached the bottom of the cycle. Many homes have lost half the value of what they were just a few years ago. The current housing market has become an opportunity for many buyers and investors. This trend will not last forever. Forbes has come up with 9 Reasons to Buy a House Now.

Reason #1:

The first reason to buy a house right now is because of the obvious low prices of homes across the nation. No one knows how long these low prices will last, but the ongoing home cycle trend suggests that prices may be going up again some time soon. As the economy slowly recovers, the prices of homes will start to increase. 

Reason #2:

Interests rates are at a 50 year low. According to Forbes “By the second week of May, 2011, 30-year fixed mortgage had fallen to their lowest rates of the year at 4.63%.” This means people are saving hundreds on payments.

Reason #3:

These low interest rates however will soon go up.  As the economy starts to recover, the interest rates will increase. The smallest increase in percentage of the interest rates will add hundreds to buyers’ monthly payments.

Reason #4:

Highlighted are the adjustable rate mortgages, which are at the lowest in years. According to Forbes “Adjustable Rate Mortgages are also lower now, although there are risks that interest rates may increase over the life of the mortgage and the balloon payment due at the end of the mortgage life, usually three or five years, could be substantial.” This may be the right choice for many first time buyers with steady income.

Reason #5:

If you have less cash saved up and want to buy a property then reason number 5 maybe important to you. Forbes suggests that “Low down payment financing through Federal Housing Administration –insured mortgages is available as an additional inducement to buy a house now.” As values in the market increase and demand increases, more cash will be needed for a down payment.

Reason # 6:

It has become easier for potential buyers to qualify and barrow. Lenders are currently allowing buyers to acquire more debt then previously 

Reason #7:

According to Forbes, because banks and lending institutions are offering no fee mortgages, it is lowering the cost of purchasing right now. 

Reason #8:

Because of the current situation in the economy, Reason number 8 can be enticing to potential home buyers. Homebuilders are competing in the current market by offering buyers incentives to purchase new homes. Homebuilders are not the only ones trying to sell homes.

Reason #9:

The last reason to purchase homes is because many home owners want to sell. Home owners just like Home builders are also throwing in incentives such as appliances, air conditioners, and even cash to lure in potential buyers.

According to Forbes “It’s a buyers market, but like everything else in life, the bargain deals won’t last.” These 9 reasons point out why buyers should make the leap now, because no one really can predict how long this current market will last.

There are many reasons to buy a house now; homeowners insurance quotes can easily be found online! We work with the best insurance agents in the country that can cover all 50 states! 

 Source: Forbes"9 Reasons to Buy a House Now" June 3, 2011   Original Article

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