David Lereah, NAR´s chief economist, said mortgage interest rates are trending up but will remain favorable. He expects the 30-year fixed-rate mortgage to rise to 6.9 percent by the end of the year. - RISMEDIA.com, April 12, 2006.
I also believe the answer is yes, so don't make a decision about buying your home simply based on the price of the home. Look at several things including interest rates, tax benefits of owning your home and your abilities to make the payments. Look at the big picture.
Here is an example using basic figures without looking at the complications or benefits of taxes.
You buy a home and have a loan balance of $400,000 at 6%. Your monthly payment is about $2398. You wait a few months or a year or two for home prices to decline 5% making the sales price become $380,000 and you pay 7% interest. Your monthly payment is about $2528. You're already behind on your monthly payment by $200. You wait for home prices to decline 10% making the sales price become $360,000 and you pay 7%. Your monthly payment is about $2395...almost where you would be today if you bought at $400,000. Now it may be true that no one can predict where interest rates will eventually go but the safe bet is that they will rise rather than retreat considering today's market rates.
How much did you pay in rent in the meantime and what were the tax benefits that you missed out on? I'll be happy to help you get educated about your goal and when you're ready to buy your home, you'll be much more prepared to make the right decisions. I'm here to help.
Visit my website for access to mortage calculators and reports on various mortgages and how they can influence the way homes are purchased at http://www.alan-realtor.com. You can also shop mortgage rates and even start a pre-approval process by clicking on the COLDWELL BANKER MORTGAGE ICON. Your comments are always welcomed and appreciated. SeeYou..........
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