Here are some reasons to buy this winter instead of waiting!
- Prices are going to continue to increase. Fannie Mae increased their conforming loan limits after seeing that prices increased almost 7% from 2016. There was also an increase from 2015 to 2016. They are estimating an increase of about 4% in 2018. More than likely the bottom has come and gone – home prices will more than likely continue to increase. If you were waiting for the bottom to hit, you have probably missed it!
- Mortgage interest rates are expected to increase. Interest rates have been hovering around 4% for some time. Many experts expect rates to increase over the next twelve months. The higher the rates go, the less you can qualify for in a house payment. An increase in interest rates will definitely affect your house payment – or what you can afford to buy.
- Some people are renting because they don’t want the mortgage payment – if you aren’t paying your own mortgage, you are probably paying someone else’s mortgage! As a homeowner, a mortgage is a type of forced savings account – you are paying down your mortgage and gaining equity in your home. Some may not want the commitment of a long mortgage so they keep renting – some may not be able to qualify for a mortgage. But if you can qualify, it may be time to buy!
- It may be time to move on with your life! If you are currently living with your parents, maybe it’s time to move out on your own. If you are in an apartment, maybe it’s time to buy your own home. The cost of your monthly payment is determined by the price of the home and the interest rates. With both on the increase, the best way to keep your payment down is to buy sooner than later.
The best thing you can do now is to decide why you want to buy – do you want a bigger home? Do you need somewhere safer for your children? Do you want to paint and decorate more than your landlord will let you? Do you want a garden? Ask yourself these questions and decide whether it’s time now to buy – or do you wait knowing the prices will probably increase!