Perfect Time to Purchase Your First Home~From Our Real Estate Expert Patrick Howells

The recession and current economic crisis has been blamed many times on what people call “The Perfect Storm”.  This typically refers to many different factors coming together at the same time to cause this global economic collapse.

We are now experiencing a “Positive Perfect Storm” for those looking to buy a home.  With the collapse of the housing market most homes are down 20%-60% from their high point.  Interest rates are so low that we have not seen these type of rates since the 60′s.  So for most of us we have never in our life time seen interest rates this low.  The glut of foreclosures and short sales still on the market far exceed the current demand and so those who must sell are forced to sell at incredible prices.

It is said that the purchase of your home is the most significant and important financial decision that most of us will ever make.  Unfortunately too often people make very costly mistakes.  So this largest of financial decisions should be treated with great care, otherwise it can quickly turn into the worst decision you will ever make.  Most people over simplify the process of buying a home and think they can do it by themselves and therefore make numerous mistakes that cost them Tens of Thousands of dollars if not more.

This “Positive Perfect Storm” is going to last for only a very short time because most experts predict interest rates to begin to rise any day and for inflation to kick in.  Why is this a big deal?  If interest rates rise just a tiny .25% (so from 4.75% – 5%) on a 30 year fixed mortgage of $200,000, that is a difference of $30 per month in the payment.  $30 a month extra over the life of the loan is $10,800.  Most experts are thinking that interest rates will rise closer to the 6% – 6.5% range over the next year.  Now 6.5% interest is still an historically great interest rate, but compared to where current rates are that is a $221 per month difference.  $221 more per month, $2,652 more per year and $79,560 more over the life of the loan.  Anybody interested in paying $80,000 more for their home than they have too?

There are many things that an expert Realtor can do to help you make the decision to buy a home be the best and most beneficial financial decision you ever make.  With interest rates at the lowest they will be, homes at what most feel is rock bottom and the over supply of distressed, must sell homes, this is a great time to get your financial life started on very solid ground.

For more information on the other pitfalls and mistakes that most people make and how to avoid doing the same please contact us for a free no obligation home buying consultation.

For more information about Patrick you can check out his expert page on our website thebrideandgroom.com or visit his website at howellsandcompany.com.