MORTGAGE RATES » Home Mortgage Loan News

Consumers everywhere are being bombarded with information declaring that this is the best time ever to buy a home. Because of government cash incentives for first time home buyers, historically low interest rates, decreasing home prices and the plethora of options available, for many this is truly a once in a lifetime opportunity to achieve the American dream of homeownership. Before you take that leap of faith, you need to consider some factors do honestly decide whether you should buy a home or avoid the process altogether.

Factor: How Long Are You Staying in the Area?

If you love the area you live in and plan on staying there for five or more years and then you should buy a home. Because of the costs involved with the home purchasing process plus regular market fluctuations, purchasing a home is a long term strategy.

Not only will you build equity, but your monthly expenses will be locked for decades and after the house is paid off you will have to pay less. If you are not sure of your future plans, renting is best.

Factor: What's the Cost?

After crunching the numbers (including HOA dues, insurance and taxes) would your monthly home owner payments be about equal to your current rent and can you afford it?

If you answered yes, then you should buy a home as in the long run, when you sell you will recover your expenses. If however, youhave an incredibly deal on a rent stabilized apartment, are 100% thrilled with your living situation and know that it will cost you substantially more on a monthly basis, staying in your apartment and investing the difference between the two options may prove to be a better strategy in the long run.

Factor: Are You Ready?

Do you want to buy a home because it has always been a dream and you want to put a roof over your head for your family and live in the area for a long time, great, buy a home. However, if you think buying a home is a great investment opportunity that guarantees appreciation in value, by reviewing the current housing market situation you will be reminded that it is not a sure thing and you should not purchase a property.

Of course when it comes time to deciding whether or not to buy a home, you need to honestly evaluate your financial situation as well as your credit history to ensure it is possibly. Couple those core numbers with your motivation and commitment to your becoming a home owner and the decision of "should I or shouldn't I" will come more easily.

Home shoppers who are interested in making the big purchase before the end of the year are getting another opportunity to finance their new home at extremely low mortgage rates. Recent reports indicate that for the first time in four months interest rates on traditional 30-year home loans once against dipped below the 5% point. Although the drop is significant, it still does not beat the ultimate low that happened earlier this year (2009).

Mortgage provider Freddie Mac made the announcement last week, where for the first time since spring interest rates were below 5% at an astonishing 4.94%. At one point in May of 2009, the rates were recorded at 4.91%. In the beginning of the year, some homeowners locked in mortgage rates of 4.875%.

There is only one month left for those interested in buying a home to take advantage of historically low interest rates, as well as the tax incentive the Government is offering first time home buyers.

Additionally, last week the Federal Reserve announced that a stimulus program to help lower mortgage rates as a way to help stabilize the housing market is being throttled. Although there are no immediate affects expected, analysts believe that mortgage rates will increase in the future.

If you can do it, this may be your last chance to take advantage of the best house buying market in decades. Although employment statistics are still bleak, many experts have been proclaiming signs of a stabilizing economy. Once the whole system is firmly on tract, low interest rates, government incentives, and discounted properties will be a challenge to come by.

If you have yet to take advantage of the tax credit for first-time home buyers, time is running out. The deadline to benefit from the sizable credit of up to $8,000 that was included as a part of the American Recovery and Reinvestment Act is November 30th, 2009.

While many have gone out and...

The media is abuzz with economic terms that many American's have never of heard of before.

"Short sales," "REO" and "distressed properties" are all catch-phrases that are being thrown around without clear cut definitions. All three of the words deal with properties in various stages of the...

Due to the turn of current events, amazing quality housing is available as foreclosure purchases. There are pre-owned beach front property, luxury high-rises and adorable Craftsman homes that became unaffordable to the previous owner, so the bank had to assume ownership of the property. Aside...

Foreclosed properties are becoming the most popular type of real estate investments people are making. By taking the time and making the effort to buy a foreclosed property, people are able to get huge financial breaks on their property purchases and many people are able to enter the real estate...

Everyone loves a bargain! Whether it is special, half-price sell or a huge real estate discount courtesy of purchasing a foreclosure, saving money is a thrill.

Many times, the discount promoted is the only discount offered as a bank's bottom-line cash value, which makes sure they do not take...

Renting to own is a way for the working poor to get the necessities they need without paying substantial amounts of cash to get it.

Rent to own is a payment plan where you rent the furniture or appliances they need for a long period of time. If the person no longer wants the product, they can...

Banks do not have a cornerstone on the foreclosure market. The government also gets their share of repossessed property courtesy of tax foreclosures.

What is a tax foreclosure?

For each house, condo and plot of land, there are property taxes that must be paid to the state. If the owner (either...

With so many foreclosures, now may be the perfect time to try to score a deal on a bank-owned property.

The prices may be lower then the average home value in the neighborhood and mortgage rates are at historic lows. The only silver lining to the economic downturn and the real estate bubble...