We’ve seen an exposion in home refinances over the last several months when interest rates hit a historic lows. Unfortunately now the rates are going back up so if you haven’t refinanced, you’ve missed your window of opportunity. Rates for new home purchases are also going up but still are low in comparison to what they were a year or so ago. As human nature usually responds, the tendency is to say, “Oh, they’ll go back down again.” and then it the old “crossing your fingers” in hopes that they do begins. It’s a game of risk. Back in the ’80’s, a good interest rate was 15% (and I had a 16% rate and considered myself fortunate as most were up to 18%)! In the ’90’s, it was 9%. In the ’00’s, it was 7%. So, what’s the chance of rates going up to the 15% level? My crystal ball says that anything is possible.
So what are you suppose to do? If you’re paying rent, you’re dumping your money into your landlords pocket. Despite the interest rate, whatever that rate will be, it’s better to put your money into something tangible than not. It will then be “your” home, “your” equity gain, “your” investment. So if you’ve been scared to buy a home because of what our foreclosure market has done, please keep in mind that those in foreclosure are those who elected not to pay their mortgage. It’s the “no pay, no stay” agreement that you sign when a lender finances you. So if you are responsible and understand that you should only buy what you can afford, you’ll be just fine and definitely should buy a home!
Whether you are located in Colorado or not, call me and we’ll talk. I can give you ideas, information and guidance at no charge at all. Vicky Baker, Dancing Star Realty, LLC – 877-488-2234