Posts Tagged first time home buyer
Home Affordability and Buying Power
Posted by whaleadmin in Finance on June 10th, 2009
The home affordability index shows that in general, home prices right now are at the most attractive, most affordable levels that we have seen in a long time. It makes sense when you consider how far home values have fallen (ask someone in Phoenix who has lost over 50% of the value of their home!). But is this recession over, or might home prices still fall even more? If you are considering buying a home, would you be better off buying now, or waiting a bit to see if prices come down even more?
That is the million dollar question, and no one can answer it for sure. But one thing you need to consider in addition to the simple price of the home is the cost of the money you will probably be borrowing to make your purchase. In case you haven’t noticed, rates have been rising lately, and rising pretty fast. The higher they go, the less home you’ll be able to afford. So if you find the house of your dreams, a house you plan to make your home, don’t worry about the rate too much. Make a decent offer, lock your loan, and realize that rates are still very low on a historical perspective, so overall, you’re getting a great deal, most likely.
Become A Homeowner – Be Part of The Economic Recovery!
Posted by whaleadmin in Finance on June 3rd, 2009
For those of you out there considering whether or not to become a home owner, let me just say that there are an awful lot of very attractive incentives out there for you. In addition to those that I’ll mention below, you can also feel good about being a part of the economic recovery by helping to absorb some of the current excess housing inventory that is keeping home prices relatively depressed in many areas. (By the way, “depressed housing prices” is a good thing for YOU if you’re thinking of buying any time soon).
So why become a homeowner and take on a home mortgage
? Well, the government is offering to GIVE you $8,000 to do it in the form of a tax credit. And the great thing is that now you don’t even have to wait to get that benefit! While you still need to come in with 3.5% down payment (on FHA loans), you can use the rest of the money to add to that down payment. Very cool! Plus, in addition to home process being ‘depressed’ as mentioned above, interest rates are also extremely low right now. So you get $8,000 to buy a low priced house at a low rate… Does it get any better than that?