If you’ve been keeping up with real estate headlines lately, you know that everyone is talking about how now is the ideal time to buy a Central California home. If you haven’t been keeping up, as your Lake Nacimiento real estate agent, let me fill you in!
Mortgage rates determine how much you’ll be paying in interest each month when you pay your mortgage. For the past few weeks, rates have been dropping. In fact, they reached the lowest they’ve been since May 2013! Last week, they fell to 3.66 percent. Historically, anything around 4 percent is considered a low mortgage rate.
What does this mean? It means that if you buy a Lake Nacimiento home now, you’ll pay much less each month on your mortgage payment, and therefore, will save a lot of money in the long run.
Rents, home values and mortgage rates are all projected to rise in the coming year by housing and economy experts, according to KCM Crew. Therefore, if you wait to buy, you could end up paying a lot more, both in home price and mortgage interest!
If you continue to rent, you’ll also be paying more soon, and you’ll never see that money again. Either way, you’re paying a mortgage. You’re either paying your mortgage, or you’re paying your landlords mortgage through rent payments. Why not invest in your own future? Someday, you can sell the home and earn a profit back. Plus, there are some great tax incentives available for homeowners.
That’s why everywhere in the news, you see articles about how now is the time to buy a home, including NPR, Consumer Affairs and Fox Business News, not to mention all of the real estate outlets, like NAR.
Hypothetically, if home prices appreciate by 4 percent by the end of the year, and mortgage rates rise to 5 percent, which are both predicted, a mortgage payment on a $200,000 home would be over $150 more a month. That’s a lot of money you’d save by purchasing a Central California home now!
This is true for both first-time buyers and move-up buyers. If you’ve wanted to sell your Central California home and move up to a bigger or better home, now is the time to do it. Home prices might rise, sure, but then you’ll miss out on the low mortgage rates and the eager Central California homebuyers!
When you’re ready to buy a Lake Nacimiento home, or ready to sell your Lake Nacimiento home, contact me, your Central California real estate agent! I’d love to help you out!
From Grace Borzini
grace@oakshoresrealty.com