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The Top 4 Reasons Why Now Is The Time To Buy

As we enter the season of spring, which is when the real estate market heats up, I wanted to provide you with the top 4 reasons why I think now is the time to buy.

#1Interest Rates

We all know that interest rates have been at historic lows for years now but 2014 was supposed to be the year that rates shot up and as a result would cool the red hot housing market.  This may still prove to be true later this year but as the 1st quarter comes to a close this has simply not been the case.  Rates have definitely held steady since the start of this year and even declined a little at the start of March.  They dropped into the mid to low 4% range and are still hovering right around 4.5% on a 30yr Conventional fixed.  FHA & VA dipped just below 4% at one point and now are holding steady right around the 4% range.  With these unexpectedly low rates it definitely should motivate potential buyers to lock in and purchase a home now.

#2Cheaper than Renting

Even with the rise in home prices and a slight increase in rates from last year, recent studies still show that it is cheaper to buy than rent.  In Broward County the average house payment on a median size home was $912, which is a lot cheaper when compared to the average monthly rent of a similar size home of $1763.  Home ownership also has tax advantages that renting does not.

#3Loan Programs

When rates spiked last summer a lot of banks and lenders had to let some of their employees go because the refinance business had dramatically slowed.  As a result many banks and lenders have become more aggressive again with lending in trying to recoup some of that lost refinance business.  This is proving to be fruitful to potential buyers.  There are numerous programs now available which include the following: 3.5% down payment;

Gift funds from relatives that can cover all expenses; relaxed credit guidelines after past short sales; 1yr self-employment; 10% down payment for jumbo loans with no mortgage insurance, and much more.

#4Tax Refund

Spring is also the time when we have recently filed our taxes and hopefully most of us are waiting for the IRS to issue our tax refund.  This is a great time to put that refund money to use and apply it towards the purchase of a new home.  Some people use it for vacation or to pay down debt, which are all great things but if you are in the market to buy a home and have been saving up then this tax refund could put you in a great position to do so now.

If you have any questions about this topic please don’t hesitate to contact me. To learn more about our company and mortgage products, please feel free to call Dan Longman, President of Priority Lending Corp, at 954-438-3776 ext.11 or email me at prioritydan@bellsouth.net. Visit us online at www.prioritylendingcorp.com 

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