Why You Should Buy Property When Interest Rates are Low
If you're trying to buy a new home, it's safe to assume that you aren't suffering from a shortage of advice from friends and family. It seems like everybody has their own personal tips and tricks, and the advice can be as different as the people offering it. Some people claim that a sizeable down payment is absolutely necessary for buying a new home. Others list proximity to school, work, friends, family and entertainment as the most important aspects. There is one thing that most people neglect to think about when it comes to buying a new home, and that's the interest rate on their impending mortgage.
Home and property buyers have lived in a fiscal utopia for the last few years because of the economic downturn. Interest and property rates have been low because of the economy, so it has essentially been a buyers' market for several years.
The economy is recovering, slowly but surely, which is great news for job seekers and employers, but it could spell bad news for people that want to buy new construction townhomes in NJ. The low interest rates you're seeing now may not be there in a few months, making now a perfect time to pull the trigger and buy your next home.
Don't wait a few more months if you're seriously thinking about buying a home or investing in a new property. Buying a home when interest rates are low can significantly impact your future savings. Low interest over the course of a 30-year mortgage can really add up: consider a $200,000 loan for 30 years. At 3.50%, your payment will be $898.09. Raise that even one percent, to 4.50%, and your payment goes up to $1,013.37. That’s a difference of $115.28 per month, or $1,383.36 per year. Over 30 years, that amounts to $41,500.80 that is in your pocket instead of your lender’s if you buy at the lower interest rate.
Take a look at our residential homes and apartments at Edgewood Properties and experience luxury living at a reasonable price! Call or contact us today!