Real Estate and Moving

The market is about to blow up. That is what we hear every 10 years or so and it is usually run by a credit cycle that our housing market goes through.  It looks like currently is one of the best times to ever buy a home.  The lending industry has negative interest rates on the rise and that means a home could be purchased for the smallest interest rates of possibly all time soon.  So is it time to get the cardboard boxes packed up and look for a new home! I want to go over some of the possibilities that are coming in the market and some things that may affect what you do with your real estate purchases in the future. 

The first thing to know is that interest rates are prime.  This is always a huge part of purchasing a home and that is because most everyone does not pay cash for a home.  The majority of Americans are in mass amounts of debt and that comes homes in a big way.  When people buy a home they end up getting a loan and mortgage to end up purchasing it.  The note is the debt and mortgage is the paperwork that states you will lose your home if you don’t pay for it. 

The extra amount of money the lender makes on interest is the incentive for them to actually give you money to buy a home.  The percentages for lending money these days are going to their lowest amount in my lifetime.  Soon it is actually rumored that interest rates on the federal level will reach less than zero.  This means that banks will lend money at most likely all time lowes.  This ends up in thousands saved over 15 to 30 years of interest accruing during the time living in the house.

This also means lower monthly payments on mortgages.  So if you are ready to get your cardboard boxes packed up and move to a new house you may be paying less for the same size house per month.  Many people are refinancing and saving 200 to 500 a month on mortgage payments.  This allows them to either pay off their house faster or have more income to spend on other things during the same time frame. So if you are thinking about moving or getting into your first house.  Now really is a great time to start looking.