Even though the market has recovered from near-historic low mortgage interest rates, it’s still a great time to become a homeowner. Whether you’re considering buying a property to live in or one to rent out, the time is now.
Here’s why. (For related reading, see: Why Does the Real Estate Sector Appeal to Growth Investors?)
Great Rates for Home Buying
According to Bankrate.com, current interest rates for a 15-year fixed mortgage hover around 3.2%. Barely surpassing inflation, this rate also allows current homeowners to refinance their loans or to put extra money toward their retirement accounts instead of paying off their mortgage early.
If you’re looking to get a mortgage right now, make sure your credit report is in top shape. Review it to see if there are inaccuracies — you want to be prepared to get the best interest rate possible. Check out a few different lenders; you never know which one will be able to get you the best rate.
If you’re considering buying a house to act as rental income, doing so when rates are low is one of the most important factors to the success of your investment. We don’t know where interest rates will go in the future. They could fall even lower or rebound to pre-recession figures, but right now is a good time to bet on the housing market.
Will Lipovsky, a blogger at First Quarter Finance, said since interest rates for mortgages are still low while the stock market is doing well, now could be a perfect time to get into real estate.
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