Mortgage rates are on the rise as they increase above five percent and are expected to go higher. The new year is expected to bring higher interest rates as rates have stayed at record lows for months. However, any rate around 5 percent is nothing to scoff at and those looking to buy a home will want to take advantage of the first-time homebuyer tax credit before time runs out.
The first-time homebuyer tax credit is in effect until summer and anyone buying a new home will have to be under a mortgage contract by April and close by June to qualify. Mortgage rates are what cause problems for most homeowners and with interest rates low and the first-time homebuyer tax credit still available this can be a great time for potential buyers.
Obviously, affordability is the key to any home and with so many struggling financially there is a need for homes that are within their budget and income. The good news is there is homes available with that are bringing in lower payments for those who are living in apartments.
Those who are taking advantage of the first-time homebuyer tax credit and low interest rates are finding homes that are not only affordable, but also cost less on a month-to-month basis than renting.
If it’s an option for you and you are looking into buying a home, now may be the best time since interest rates aren’t at record lows, but still affordable and the first-time homebuyer tax credit is still available.
