If you’ve been thinking about purchasing or refinancing a home, now might be a good time to act – or at least explore your options.
After all, mortgage rates are at historical lows.
Opportunities that are available now may soon vanish when the housing market straightens itself out.
You could see benefits for years to come by capitalizing on current interest rates.
Following are some of the benefits:
While home values in many parts of the country continue to fall, buyers may be holding out until they feel that the real estate market in their area has reached the bottom. Truly rock-bottom deals exist but are less common these days, especially in the case of foreclosures, as banks would rather sit on homes than give them away.
Looking at a purchase transaction as a long-term investment means that market fluctuations down the road, either way, should have only minimal influence on your decision to buy.
As much as falling home prices are a benefit to homebuyers, they can represent challenges for those looking to refinance their existing homes. Regardless, saving a percentage point or two on a mortgage rate can add up to thousands or even tens of thousands of dollars over the life of a mortgage. There are programs that allow a refinance with little or no equity in a property, and existing Federal Housing Administration borrowers may even be able to refinance without having to get an appraisal.