Should you buy a Home while mortgage rates are at ALL-TIME LOW's or should you wait for the Housing market to crash? Some say BUY a HOUSE NOW while Mortgage Interest Rates are low. Others are saying, Don’t buy a house because we are in a housing bubble and the housing market is going to CRASH. Who's right? This video will help you decide if you should buy a home now or if you're better off waiting to buy a house. The main focus here is to give clarity to the following questions, Should I buy a house right now because mortgage interest rates are historically low? Or, should I wait for prices to come down?
Utah Realtor: Ty Wilde
801-995-2337
TyWilde7@gmail.com
https://www.eaglemountain.com/
Wise Choice R.E.
Find me on Social Media –
Instagram: https://www.instagram.com/ty_the_real_estate_guy/
Twitter: https://twitter.com/Ty_Wilde
Facebook: https://www.facebook.com/TyTheRealEstateGuyUtah/
Subscribe to my channel for the best Real Estate, New Home Construction & Home Tour videos on YouTube.
Recommended Videos:
Rent vs. Buying a Home - https://youtu.be/m9WA1ft3uDc
Low Mortgage Rates vs. Increasing Home Prices - https://youtu.be/waQgIAs3PfE
How Buying a House Builds WEALTH - https://youtu.be/yl9tEI02blM
Why You Need to BUY a HOME in 2020 - https://youtu.be/gPObqfFXadE
Building vs. Buying an Existing Home - https://youtu.be/DeW06h6Ogzg
Mortgage Rates are crazy low, but home prices have skyrocketed. Home prices do go up over time, but the rate at which home prices are increasing, is at a much higher rate than what's normal. Really, a rate that’s not sustainable. In most parts of the country, the housing market will start to slow & in some areas even decline. But, in some markets, houses will continue to sell & home prices will continue to rise. In places like Utah where we are in a housing shortage & the economy is strong, home prices will continue to increase, & probably for a few more years. I’d expect that home prices, even in hot markets will soon begin to stabilize.
So, what does this mean for you? Should you buy a home now or should you wait?
It’s a personal decision. Do YOU want to buy a home or are you doing it because your feel pressured by these historically low mortgage rates, loved ones, or other?
If you're ready and want to buy a house, make sure you have the following.
#1 a stable job.
#2 good credit
#3 a solid understanding of your local market
#4 a sizable down payment. A minimum of 5% down with enough money for closing costs & 4-6 months of cash in reserves. If buying a home puts you in a situation where you’re living paycheck to paycheck, you’re playing with fire because you’re one economic, personal, or natural disaster from losing everything. Also, if you have thousands of dollars in debt, pay that off before you buy a house.
If you’re in a good position to purchase a home, & you feel like the timing is right, talk to a lender to see how much home you can afford & what your monthly payment will be. Remember that a lender is going to approve you for the MAXIMUM amount of home you can afford. You don’t have to buy a $500,000 home just because you can. Instead, buy a home that's in your comfort zone. Most people get excited & buy the biggest home they can afford. The problem with this is that if there’s a loss of a job or a serious injury or illness, it can be difficult and sometimes impossible to make that huge monthly mortgage payment. Buying a house can be a huge financial blessing, but for fools, it can be a disaster.
To put it simply, these lower rates give you about $40,000 in additional buying power. $40,000 can go a long way. If the housing market was to crash, most likely prices wouldn’t drop enough to erase the difference in what you’re saving by purchasing a home at this crazy low 3% mortgage rate.
If you’re making good money & you’re currently paying rent, you may want to buy a home & rent out some of the rooms. This could be the best investment you ever make as your roommates could end up paying your entire mortgage every month. You get all the benefits of owning a home; equity, tax write offs, a place to call your own & you no longer need to pay someone to live under THEIR roof & pay off THEIR mortgage.
So, Should you buy a house right now because mortgage interest rates are all time lows?
The answer is Yes & No.
Yes, if your ready & want to buy a home.
NO if you’re just buying a house because rates are low, especially if you’re not in a solid financial situation. That is a formula for disaster. Because buying a home is a huge financial commitment, don’t do it until you’re ready.
Ty Wilde is Utah's best real estate agent on YouTube with over 150 real estate videos. Ty is Utah's best Realtor on YouTube for New home construction videos. Ty has some of the Best Videos on buying a home, selling a home and Real Estate investing. Subscribe to Ty’s channel for the best real estate videos on YouTube.
Comments
Post a Comment