There is a lot of talk right now about how now is a good time to buy a home. If you hurry, you might be able to squeeze in a home buyer tax credit. You have to have a home under contract by April 30, though. And you have to be or first time home buyer, or you have lived in your home for five of the last eight years to qualify. Since I don’t fit either requirement, I’m in no hurry to rush into getting something that I might not really want. But my husband and I are looking — tentatively — for a new home. We’ve been in this one for three years, and with my husband finishing his Ph.D., we might look for an “upgrade” if he gets a job in this area.
But waiting might not be the thing to do. There is speculation that after the home buyer tax credit expires prices could drop again. Indeed, there are some predictions that, in some markets at least, home prices haven’t bottomed out yet. So, maybe it’s a good thing that we plan to be patient, waiting until we find just what we want at the price we want. However, our waiting may hit us in another way: rising interest rates.
Mortgage Rates Expected to Rise
Even though home prices might fall a bit further in some markets, mortgage interest rates are expected to rise in general throughout the country. So, while continued joblessness and distressed sales may keep prices low in many markets, the fact that the stock market is recovering and the economy is picking up, may result in higher mortgages rates. With stocks becoming more alluring, Treasury yields will have to rise to attract more investors, and mortgage rates are connected to 10-year Treasuries.
With mortgage rates rising, it could undo any advantage that comes with buying a home at a lower price. Kiplinger offers this interesting example of how rising mortgage rates can offset falling home prices:
If you borrow $300,000 now with a 5% rate, you will pay $1,610 per month. If wait, and borrow $282,000 later, but have to pay 5.7% interest, your monthly mortgage payment will be $1,637.
It’s only a difference of $27, but it can add up. Over the course of a year, that’s a $324 difference. Over 15 years, the difference is $4,860. Carry on for 30 years, and the difference you will be paying overall is $9,720. That small difference looks more important, especially when you think that you might have been investing that money and earning a return all that time, instead of paying higher interest charges.
Now Might Be the Time to Buy a Home
If you believe the experts, that interest rate are bound to rise by the end of the year, then now could be the time to buy a home, especially if you have been planning on it and can afford it. Of course, there are other issues to consider. You might have to wait to buy a home in order to accomplish the following:
- Higher credit score
- Bigger down payment
- Documentation for proof of income
Lending standards have increased, and you may need to meet them in order to qualify for a home loan. Additionally, if you already have a house, you will have to sell it. This means that you run the risk of trying to sell for less than you would like. Many banks won’t let you do a short sale if you are not in a difficult financial position. So, unless you have adequate equity, a down payment of anywhere between 5% and 20%, and a good credit score, you might not be able to buy a home — even you want to.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=37bfac7b-ecf8-4bae-9954-bb83968c8b4c)

What about if prices drop again? What would happen if prices drop again…meaning a 250K home with 5% vs. 6% with 240K home (just making up an example)….
Just have to think about whether prices are going further down.
Visiting from yakezie – You should install comment subscribe plugin!
.-= Evan´s last blog ..What is Your Day Job or Profession? =-.
Thanks for your comment Evan, and your plugin suggestion! I have added a “subscribe to comments” plugin.
Best,
Rob
mutual fund nav, best mutual funds
Mutual Fund NAV is the “Net Asset Value” of the mutual fund…but what does that REALLY mean? How can mutual fund NAV help or hurt your chances for success?
mutual fund, mutual fund store
tickets, concert, 2012
i am a huge adele fan and i know shes sick and has to cancel the rest of her
US tour but i would really love to get vip tickets to see her in concert on her next tour. so i was going to see if any of you guys would know. thanks in advance!
vip, adele
winning system, betting system
guarantee winning roulette system that also be automated
roulette system, casino system
best way to make money online, best internet marketing, best internet marketing strategies
Our Strategies eBooks are put together to assist you in doing all the strategies for yourself. We are here as a company to assist you in putting together a strategy for your business
best internet business, a successful internet business
toy story soldier costume make, toy story soldier costume kids, toy story, woody
Don’t have one of Toy Story Collection?
Find Your Lovely Toy Story Easy Here.
Buzz will find you. There’re Jesse and Bull eyes waiting for you too. Of course there’s Woody, a pullstring Cowboy doll.
toy story soldier costume uk, toy story soldier costume adults, toy story soldier costume
beaches, relaxi…, Resort, escapes, Retreats, Yoga, thailand, Detox, islands
At Kamalaya Koh Samui, Thailands award-winning Wellness Sanctuary and Holistic Spa resort, you can experience a life-enriching healthy holiday. Our wellness …
Retreat, Spa, Healthy, Spiritual, Wellness, koh samui, packages, Holidays, Health
perder peso, pastillas. rutina, barriga, trucos, adelgazar, ejercicios
Pues mira eso depende de que actividad realices en tu vida cotidiana,ya que aveces trabajamos bajo mucha presion y otras veces noâ¦pero bien el realizar ejercicio siempre va a ser sano,siempre y cuando no te sientas mal y/o decaida
quemar grasa, dieta, dieta, consejos, secretos para bajar de peso, remedios
organic coconut, coconut oil
What are the benefits of organic coconut oil? To produce this product the coconut flesh will be dried at a lower temperature, and will than be
organic coconut oil
Advertising, Advertising 6000
successful marketing campaign involves more than simply placing an ad in the paper. It is a fine-tuned strategic program of targeted activities that may include branding, advertising, direct mail, radio or television advertising, social media, online email marketing, events and so much more.
The important consideration is knowing what campaign components are right for your business, product or service and how you can get best bang for your buck. You don’t need to spend a fortune on your advertising campaign to achieve results, you just need to target our advertising wisely.
Advertising Agency Perth, Western Australia Advertising
best work out dvds
Best work out dvds is 90 day program that can be used in just 30 minutes each day.
homebased business, make money fast, make money on computer, work at home, how to make money fast
Make Your Autoresponder Emails Go From Ordinary To Extraordinary With This Brand New Media Autoresponders Software Script…
work from home, business opportunity, online home based business, Make money online, make money from home
online home based business, make money on computer, how to make money fast, work at home, business opportunity
Here’s How You Can Stuff Money Into Your Pocket Starting Today… Using Easy But Little Known Methods That Require Nothing More Than 4 Hours A Day Of Your Time
make money from home, homebased business, make money fast, Make money online, work from home
best work out dvds
Best workout dvds allows you to become fitter and stronger in just 30 days
New Hampshire Home Builder, nh home builder
D & F Builders, LLC
37 Whitehall Rd.
Hookset, NH 03106
Call Dennis at: (603) 361-4581
Video collage of D & F Builders recent work, the premiere New Hampshire Home Builder. Want your new home built by the most trusted home builder in New Hampshire? Call today to get your quote.
D & F Builders LLC
free baby stuff
Read THIS small post and put your wallet away. Our free baby stuff site will uncover coupons and samples for diapers, baby bottles, toys and more…
free baby samples
refinance, strategic walkaways, default, strategic default florida, str…, strategic default, florida
Want to refinance that Jumbo loan, but there is no help other than Strategic Default? We have a solution to regain equity in your home. Keep your credit inta…
modification, jumbo, loan, workout, walkaways, strategic
vodafone phone insurance, Mobile Phone Insurance Comparison
Great Value Mobile Phone Insurance for your UK Mobile Phone. Get 1 Months Free Mobile Phone Insurance, Get 12 months Cover for the Price of 11. Special Offer, Order Now …
Orange mobile insurance, Mobile Phone Insurance
best workout dvds
Best workout dvds is an effective exercise routines that have been proven to lose as much as 60% fat in just 3 months
medifast coupon, medifast promo code
Medifast Diet Review — Lose weight now with Medifast and save big with coupon codes
medifast review, medifast coupons
Interior Design
Interior Design & Furniture Ideas – Helpful advice with choosing your Furniture
Furniture Ideas
ADHD Symptoms in Children
Read this blog and find out the early ADHD symptoms in children, what can you do if your child displays these symptoms and the correct treatment.
who is antichrist, revelations antichrist, who is the antichrist, the antichrist, anti christ
The Antichrist Identity is a blockbuster 160 Page Report which examines the controversy around Who Is The Antichrist. Shocking and frightening insights into the rise of world government
antichrist, description of antichrist, the anti christ, antichrist description
blood pressure chart
Click here for blood pressure chart, an introduction into systolic and diastolic blood pressure, how to measure BP, how it varies with age and how to control high BP…
prostate gland
Read this small blog and learn everything you need to know about the prostate gland and its problems: what is the prostate gland, its functions, frequent problems and treatment…
prostate problems
best work dvds
Best workout dvds is a fitness program designed to help you reshape your body in just 6 weeks.
mahogany desks, Mahogany reproduction furniture
Reproduction Furniture in Mahogany and Yew Wood with 100% Satisfaction Guarantee from Furniture-Collection.co.uk
Reproduction Furniture
Stop Snoring Devices
Read this small blog and you’ll learn which are the best, cost effective stop snoring devices and how they function.
coupon codes first, promo codes, medifast today, medifast meals, down medifast coupon, code, down medifast, track down medifast
Lose weight with Medifast Coupon codes. Go here to checkout the best coupon codes for medifast
coupon codes, promotional codes today, medifast packages, medifast coupon codes, medifast coupon, medifast members, track down
Naruto games online, Naruto games
Click here to play Naruto games online, learn about the latest PC, PS3 and Xbox Naruto games, and other Dattebayo news…
Naruto online games, Naruto shippuden games
best workout dvds
Best workout dvds is a fitness program designed to help you reshape your body in just 6 weeks