Wednesday, September 10, 2008
Is Now a Good Time to Buy?
That's what realtor and frequent commenter Chris Miller thinks. "Yesterday interest rates dropped to 5.7%. How long this will last I do not know. If you are thinking of buying or selling it might be a good time to get a CMA. We have a lot of homes on the market at this time and buyers are looking at lots of homes. They, of course, are looking to see if they are buying in at the bottom. "
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8 comments:
Probably best to see who wins the election. Obama will raise everyone's cost of living by jacking taxes in a soft economy to make his wife proud to be an American for the second time in her life. Let's get past these two first.
I think Chris is right, but anyone buying now has to look at things from a long term perspective - property values are not going to spike up, they'll bump along for awhile and then gradually increase. If you're a short term investor, don't do anything.
The Banker
how many points does somebody need to pay for that interest rate? I only ask b/c while it might be a great interest rate, if it has 2 points required to get it, then it might be a fairly high entry point for some first time homebuyers.
I'm of the mind that it is never a bad time to buy a home (as opposed to a building to make a quick buck).
Geoff,
I don't know about points. idf Chris sees this, he can respond.
Banker,
I've been reading that you're a figment of my imagination.
Anon 6:57,
It's interesting to see how presidential elections have such an impact on things like a decisison to buy a home. I think Iraq is a big factor, too. A lot of people are being shipped off or are concerned about being shipped off and are reluctant under those circumstances to buy.
Banker
Thanks for the compliment and I agree with you on the spikes in the market. I believe it will be a while before we see double digit increases in home prices.
As to points, if I remember corretly you can buy that rate for 1 point. Keep in mind that if you find the right buyer you can gain some concessions from them and that includes paying some points
Lots of different subtopics here -
On points, think of them as nothing more than a fee you pay for a lower interest rate. Simply do the math on what your payment would be with and without points, how quickly you will recover the cost (the point), how long you plan on being in the house, whether you plan on refinancing anytime soon (i.e., for college expenses or major home improvements) etc. and make your decision! As you see, there's alot there, a good lender will walk you through the analysis so that you make the right decision.
If as Geoff asks you are a 1st time homebuyer and funds are tight, you can get a 30yr mortgage w/ 0 points for about 6% or so today. In addition to what Chris said re seller concessions, you always want to ask your lender about 1st time homebuyer specials or other discounts, most lenders offer them.
And on the figment comment, damn Bernie, you were caught again!
The "Figment of Bernie's Imagination" Banker
I was just curious. Thank you to Chris and The Banker.
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