When Is the Best Time to Buy a LA Home?
It is now! Yes, I'm serious. Declining prices and low interest rates result in law mortgage payments and entice buyers to get really serious about buying a home. It's time to change the rent payment with a mortgage payment! Likely, the mortgage on a new house will be very close to the amount needed each month on renting an apartment or house. The interest you pay on a mortgage is tax deductible. Your lease payments do not offer tax benefits. That's not the only reason to buy. I have more reasons for you.
1. As it is, a LA home buyer in today's Real Estate market has the advantage. Housing prices are lower then they have been in a long time. Buying a home is as affordable as it gets. It's a buyer's market,demand is low,supply is high. In early summer, the National Association of Realtors reported that sales of existing homes (single-family houses and condos) fell by 9 percent from the year before. NAR also reported 9.5 months' supply of homes. That's how long it would take to sell all the homes on the market at the current pace of sales, and it strongly favors buyers. (Four to six months' supply is considered balanced between buyer and seller.)
Consequently house mortgage payments may not change at all when the mortgage payment is fixed instead of paying the rent for the LA home each month, which eventually will be raised.
2. Interest rates have never been lower. For the past couple of months, interest rates have hovered at levels last seen when the veterans came home from the Korean War. On October 15, 2011, national lenders quoted a 3.9% rate for home mortgage in LA real estate market. That is a phenomenal rate. If you do not have a mortgage, get one. If you have a mortgage, now is the time to refinance. Adjustable-rate mortgages are even cheaper, and even rates for jumbo mortgages have hit lows not seen since the 1980s.
Freddie Mac forecasts a 30-year fixed rate of 5 percent by year's end and 6 percent by late 2012.
3. Do not have enough money for a down payment of 20%? You do not have to. First-time home buyers still have the advantage of the use of government-backed FHA loans. These loans have not changed and require very little down, usually 3% of purchase price. In addition, you may have less than perfect credit and still qualify for an FHA loan.
You may have wondered in the past, how I can get a mortgage? Or do I get a mortgage? Now is the best time for you to stop renting and become a home owner. Yes, LA Real Estate Market offers the best home buying opportunity in years.
1. As it is, a LA home buyer in today's Real Estate market has the advantage. Housing prices are lower then they have been in a long time. Buying a home is as affordable as it gets. It's a buyer's market,demand is low,supply is high. In early summer, the National Association of Realtors reported that sales of existing homes (single-family houses and condos) fell by 9 percent from the year before. NAR also reported 9.5 months' supply of homes. That's how long it would take to sell all the homes on the market at the current pace of sales, and it strongly favors buyers. (Four to six months' supply is considered balanced between buyer and seller.)
Consequently house mortgage payments may not change at all when the mortgage payment is fixed instead of paying the rent for the LA home each month, which eventually will be raised.
2. Interest rates have never been lower. For the past couple of months, interest rates have hovered at levels last seen when the veterans came home from the Korean War. On October 15, 2011, national lenders quoted a 3.9% rate for home mortgage in LA real estate market. That is a phenomenal rate. If you do not have a mortgage, get one. If you have a mortgage, now is the time to refinance. Adjustable-rate mortgages are even cheaper, and even rates for jumbo mortgages have hit lows not seen since the 1980s.
Freddie Mac forecasts a 30-year fixed rate of 5 percent by year's end and 6 percent by late 2012.
3. Do not have enough money for a down payment of 20%? You do not have to. First-time home buyers still have the advantage of the use of government-backed FHA loans. These loans have not changed and require very little down, usually 3% of purchase price. In addition, you may have less than perfect credit and still qualify for an FHA loan.
You may have wondered in the past, how I can get a mortgage? Or do I get a mortgage? Now is the best time for you to stop renting and become a home owner. Yes, LA Real Estate Market offers the best home buying opportunity in years.
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