Buy Now or Buy Later? A Mortgage Rate Dilemma

Have you ever heard the story of the guy who always held out until tomorrow because he was certain mortgage rates were going to go lower? He waited his entire life and ended up dying with plenty of money, but living in an apartment. Sort of defeats the purpose of saving money to buy a home, doesn’t it?

A lot of potential home owners are like this fellow, constantly waiting around for the best deal to come along. They are certain they can wait out the market – little do they realize the market can long outlive all of us!

The Mortgage Rate dilemma.

Mortgage rates, with all the dire predictions over the last few years that they will soon be increasing, are still at one of the lowest rate thresholds ever despite weakening economic conditions around the world. There are many reasons for that, and maybe we can address them in a future article. But the fact remains that 30 year fixed rates are about as low as they have ever been.

Of course, as with any financial tool, mortgage rates will always be in flux. The good news for many homeowners currently holding mortgages, is that when rates drop substantially, the opportunity is there to refinance into into an even lower rate. It’s almost like being able to have your cake and eat it too!

Buy now or buy later?

There is no better investment you can ever make than buying a home for your family. Homes are an investment that, over time, will gain in value. Real estate is one of the safest investments you can make.

With all the news over the last number of years about the real estate fallout with sub-prime mortgages etc., most consumers who manage their credit and finances correctly can avoid having to deal with any of that. Knowing how much house you can afford, and what payments you can comfortably make will ensure that you don’t become another statistic. A good mortgage broker can help you figure that out.

One thing to remember, is that the future value of a dollar is always less. If I gave you the choice of giving you $100 today or $100 next year, the $100 I give you today is going to be worth more and will have more buying power. The same goes with a house – waiting to buy a house because you think the market is too volatile right now could be a big mistake. If your finances are in order and you are on solid ground with your credit, this make the perfect time to take advantage of today’s low mortgage rates and get a great deal in the real estate market.

There is no mortgage dilemma.

Taking advantage of the rates available today can help you secure your family’s financial future for years to come. Despite all the negative news you might hear about the real estate market, the fact of the matter remains that people who have kept up with their finances are going to benefit greatly from the housing market as it stands today. So why shouldn’t you as well?

Author: Lester Bleich, NYS Licensed MLO, NMLS #152252

My name is Lester Bleich. I am a New York State Licensed Mortgage Loan Originator, NMLS #152252. As a mortgage finance specialist since 1987, I have been privileged to have helped well over 1000 homeowners with their home mortgage financing.

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