by: Tom Levine
Many people fret the rising tide of interest rates. You’ll hear things like, “Did I miss the boat? Is it too expensive now to buy a home? How can I afford the house of my dreams? Maybe I should wait! Maybe I should just rent for a while! Maybe the rates will go down in a few weeks. “
Stop! Nonsense, I say!
I bought my first home at close to 9%. Buyers from the 80’s told me I was getting in at a bargain, and anyway, who cares? I don’t. I refinanced long, long, long ago. 9% is just a part of history now.
So, here’s 5 important points you need to keep in mind, when the ebb and flow of interest rates, ebbs up, more than it flows down…
1. There’s no better time, then NOW!:
I know it sounds cliche, but it’s true. There’s no better time to buy, then now. Why?
See what I mean? Don’t wait. It only gets more expensive. There’s always, no better time, then NOW!
2. Long Term Investing:
If this is your first home, then you have to think beyond the next year or so, and move your frame of reference into a longer futuristic point of view.
So rates go up and down in the short term, but in the long term, real estate always appreciates, and that means that homeowners always win.
3. Creative Financing:
This is the good stuff. When rates go up, opportunities abound. You see, many homeowners, builders, and developers, find themselves in more negotiable positions because of the laws of supply and demand. Surplus rises, and buyers slow down.
The key here (and this is very important), is to find an excellent real estate agent. I can’t stress enough, how important it is to have someone on your side, who understands the lay of the land. Don’t go at it alone. Just go find someone knowledgeable, who you can trust, and who is ready and willing to roll up their sleeves, and go to work for you.
4. Uncreative Financing:
As of the writing of this article, rates are still very, very low. Anything below 7%, for a fixed rate, in my opinion, is totally workable.
5. Buying a Home when Rates Go Down:
When rates go down, of course, it’s obvious that getting a loan and buying a house is extremely attractive.
Keep that in mind. Which would you prefer? Personally, I dislike high rates, but I LOVE being in the drivers’ seat. I guess in the end, you’ve just got to work with whatever environment exists today. Any way you look at it, you can’t stop and wait until the cards stack up in your favor. You just have to dive in, and get started. If you like to be creative, if you like opportunities, and if you like to be in the drivers seat then rising rates shouldn’t bother you in the slightest. Renting is more of a crime to your finances, in the long run.
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.