Heard It On The Radio
This morning, driving to the office, I heard the ubiquitous claim of low home mortgage interest rates on the radio. And it is true, rates are low. All time lows? Nope. That moment came and went during the height of the Great Recession when most anyone didn’t want to buy housing. But, compared to most of my career, home mortgage interest rates are incredibly low.
So it is a good time to consider buying and selling your house from a financial perspective. Let’s start with Selling your house.
Low Home Mortgage Rates Create Buyer Demand
When rates fall into lower territory, it can cause home shoppers to get off the darn fence and make a decision. This is great news if you are contemplating placing your house (or condo or log cabin – you get the idea) up for sale. More buyers means more demand. As a home seller you are in a good position for a quicker transaction, fewer holding costs (if its a vacated rental property) and even the holy grail of home selling: Multiple offers.
In fact, more buyer demand coupled with low inventory creates favorable conditions for a Sellers Market – the best time to sell. I’ve written about the current Boulder real estate market conditions just recently – you can locate the article here. Having more interest in your house is a very good thing. Take advantage of the rate pressure to get your home up for sale. I can help with that. I really thrive at listing and selling homes in today’s market. Please contact me to get the ball rolling.
Low Rates Create Time To Act Home Buyers
Home Buyers, the number one most important financial aspect of your purchase will be your month to month mortgage payment. Theoretically, you could be making this very same payment for the next, oh thirty years, give or take. Given – you might be one of those well organized chaps and pay down the note in advance. Best I’ve ever seen of this, btw, is a long time Asian client of mine having paid off 2/3’rds of her mortgage in a handful of years. Talk about creating financial Independence.
I digress – sorry. Look, low mortgage rates = low monthly home payments. So, Boulder home buyers, now is a great time to control your destiny, lock in a low payment and get your dream home. Alternatively, you may not really care about the lowest payment. Instead, you may be driven by the greatest purchasing power.
More powerful than saving for a larger down payment is taking advantage of the low mortgage interest rate to purchase the very maximum amount of house/mortgage you qualify for. Consider, for a moment, all things being equal what would happen if home mortgage interest rates were a point higher. Your maximum purchase price would decrease – while you would still have a big time house payment. Just less house to show for it.
So whether it is to have the lowest payment or the maximum purchasing power, today’s crazy low home mortgage rates are definitely your friend.
Find Your Dream Boulder Home Today
Search for your perfect new home right here. Or give me a shout to discuss your home buying criteria.
Third Group Benefits: Owners Not Selling
Oh, also, there are refinances. In general – do keep in mind that each and every time you do a refinance, there are home owner fees. The origination fee, appraisal, doc fees. These all add up. Mortgage Lenders will frequently use a line about no-fee Refi closings. This is not factually accurate. There are expenses,which generally are paid for via either a higher loan amount or dipping into your hard earned equity. So my two cents: only do a home mortgage refinance under the best circumstances. And try to limit refi’s to once a year or whenever your payment’s fixed rate will fall by 1% of more.