It’s a Great Time to Buy!

Mortgage interest rates have trended up, and for most, the shock has been doubled because they were in the low fours in the beginning of the year. The media hasn’t helped either with headlines dramatizing the increase and it is no wonder that the purchase market has slowed considerably. So is it a good time to buy right now?

It is a great time to buy right now! Why?

Not more than six months ago, when the rates were lower, it was a crazy market. Buyers had to overbid the sales price, some as much as $50- 100,000 more! And they still could not win. That’s crazy! Now rates are higher and the market is much quieter, now you have a chance to win a bid. But the rates are higher! What good was that “low” rate when you could not purchase?

Is it the house you want or the “low rate?”

You see, everyone is so focused on the rate that they forget what the primary purpose is — to buy a home! On top of that, the national average, including Hawaii, is that most homeowners refinance within five to seven years. Rates will come down again and you will join this statistic and refinance, so it did not matter what the rate was! We want to really get away from this rate obsession and concentrate more on homeownership.

Should I wait for rates to come down before I buy?

That’s another frequently asked question and you might be surprised at the cost of waiting. Let’s look at an example (right) in which you can buy now or buy three years later.

The net result: you paid $40,000 more in down payment, more in closing costs (larger loan), lost $200k in equity, paid 36 months more rent and ended up paying only $37 more per month!

Don’t wait or hesitate, if you can buy now, buy now! If you can’t, let’s make a plan to buy down the road.

CROSS COUNTRY MORTGAGE
CONTACT 808-222-2411