January 4th, 2011 7:00 PM by Jodie Ford
Why buy now?Price is a major concern for anyone selling a home, but when you’re buying a house – your monthly payment should be your primary concern. Your monthly payment is impacted by the price of the home and the interest rate of your mortgage – this equals the COST of the home. Waiting for prices to bottom out in the Charleston AFB market, while rates are increasing - can actually end up costing you more over the life of the mortgage. The KCM Crew reports the following:
§ Just in the last seven weeks, rates have increased over 1/2 a point going from 4.17 to 4.86.
§ In an article last week CNN Money reported: “You can kiss those record lows goodbye,” said Greg McBride, chief economist for Bankrate.com.
§ Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau. “I don’t think we’re going back to a 50-year low anytime soon without an economic collapse,” he said. “Rates will probably never revisit those levels.”
While prices may continue to soften this next year, the experts project prices to rise reaching a cumulative appreciation of over 10% by 2015.
Purchasing a home in the Charleston AFB area today makes great sense from a financial standpoint. Remember the saying “Buy low and sell high”? We definitely may be at the low point regarding the COST of a home.
Why do Charleston Military families buy a home in the first place?For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:
· A good place to raise children and for them to get a good education
· A place where you and your family feel safe
· More space for you and your family
· Control of the space
Bottom LineThe COST of a home will most likely remain basically unchanged even if prices continue to depreciate. In the long run, the finances will work in your favor – so contact Military Homes of Charleston today!
**Information provided by the KCM Crew via www.KCMblog.com**