Some people believe that now is the best time to buy a home because of the mortgage products that are available. In other words, low interest rates can make the home buying experience much more enjoyable; not to mention more affordable. But does this mean that you should rush ahead and buy a home?
There is no denying that interest rates are very competitive. For a 30 year fixed rate loan, a consumer with good credit can secure a rate of around 5 percent. For a 15 year loan, the rate dips below 5 percent and may touch 4.7 or so. As you can imagine, these rates can save you a lot of money in the long run.
Of course, lenders are tightening their belt and only offering loans to consumers who are able to repay them ? this was not always the case in the past. You only want to secure a mortgage if you are comfortable with the monthly payment and in the market for a home. In other words, don?t let the mortgage market dictate when you buy a home. There is more to the buying process than securing a low rate.
In short, now is a good time for a mortgage but only if you are 100 percent sure that you want to buy a new home.