Why Consumers Should Make the Move to Sell or Buy Now! By Gena R. Martin Rents increased in 2012, for the third consecutive year, and are predicted to continue to rise throughout 2013, and the cost of buying a home is predicted to...
Why Consumers Should Make the Move to Sell or Buy Now!
By Gena R. Martin
Rents increased in 2012, for the third consecutive year, and are predicted to continue to rise throughout 2013, and the cost of buying a home is predicted to steadily climb. The pressure is on for sellers and buyers to make their move. Consumers should be moving to lock in their cost of owning a home.
Sellers who sell now may not, depending on the local market, retain the equity that they thought they had, but huge gains are to be made on the buying end. Obtaining properties, and many times, much larger homes and with more land for much less and then you combine that with the record low interest rates we have currently, the savings is monumental.
Buyers who buy now have the opportunity to find a good deal! This is a buyers market and prices have been at their lowest, although starting to inch back up again. With the abundance of bargain priced houses, due to falling prices and foreclosures and record low interest rates, making a move makes sense. Additionally, buyers without a lot of cash can apply for FHA insured mortgages, which are available to buyers with a low-down-payment as an additional inducement to buy a house now. These down payment minimum requirements tend to increase as the markets rise, so now may be the right time to buy.
In 2002 a $140,000 mortgage at 6.65% would cost a buyer an estimated $1013.13 monthly payment and $169,695.54 in interest. In the present, 2013, a $140,000 FHA mortgage at 3.4% would cost a buyer only an estimated $744.98 monthly payment, $80,591.50 in interest, and only $4900 down payment. That's a huge savings!
The following link illustrates the amount saved from 2002 to 2013 , based on lower interest rates now, verses 2002. http://chartgizmo.com/GenerateChart?id=41654
The economic recovery is showing gains of momentum and this will cause interest rates to rise, which will make mortgages more expensive. Just a half-percent increase in mortgage interest can cause monthly mortgage payments to be a hundred or more dollars higher, depending on the amount of a loan.
With all the factors above, now may be the right time to sell to get into a dream home and have a lifetime of savings. However, like everything else in life, the bargains won't last long, so now may be the right time to make a move.
Real Estate Broker with Kokomo's #1 in Sales Brokerage Firm, The Hardie Group. Entrepreneur, Former Partner and Originator of JAB Entertainment LLC, and Colosseum Combat LLC, Current Partner of EarthPros LLC, EP Investments LLC, and Driven Ventures LLC, 2008 and 2012 Campaign Manager County Council, 2012 State Delegate, 2011 Mini Marathon Competitor along with Cross Country Events like the Mudathlon. http://genamartinrealtor.weebly.com/