Arguably, buying a home now is not “buying low”. Prices are on the upward trend and have been for a while now so don’t expect to get a “deal”. Here is what CoreLogic has to say about home prices in 2019 as well as the forecast for 2020. If you want to pay less for a home than what the future expects, you will want to buy this summer.
Interest rates are expected to increase…but what’s new… Interest rates for mortgages have been low for quite some time and while this has nothing to do with the price of the home, it has everything to do with how much it costs you to pay back the portion of the home you don’t pay for with cash. There is no crystal ball but there is a report from Freddie Mac (and a lot of others) that indicate rates will be higher in 2020 than in 2019.
Weighing out the cost of rent versus the cost of homeownership is always key when deciding whether or not to buy a home. Homeownership is NOT a get-rich-quick-scheme. There are lots of items you pay for as an owner that you simply do not pay for as a renter. Taxes, insurance, repairs, maintenance, etc. All things an owner pays for. As far as the mortgage goes, you can pay the landlords or you can pay yours. Question is, are you ready for homeownership? All of it?
Is it time to become a homeowner or move up from your current home to something bigger/better? You make the call but do so with a critical financial thinking cap on. Prices and rates are on the rise so waiting will likely mean you will pay more in the future than you would pay buying today. Would you buy even if rates and prices were not on the rise? Are you feeling pressured to buy just “because”?
Bottom Line: If you feel that now is or may be the right time, there is only one way to find out. Work with a true professional who isn’t looking out for their paycheck more than they are looking out for you. Much of the general advice I give is free but when it comes specifically to structuring a debt this large, you will be thankful you choose me to have in your corner.