Home loans for first-time homebuyers are currently available at a rate of around 5% on a 30-year fixed-rate mortgage, as interest rates on home loans have risen slightly from their record lows over the past months, but there are still some analysts who feel that despite these increases, buying a home loan at the present time would provide affordability and bring great deal for new homebuyers. Obviously, many homeowners have seen a decrease in their property value and, coupled with these underwater mortgages, personal financial troubles have also led to many homes simply sitting empty in the housing market which could offer low home prices to go along with these interest rates that many people are qualifying for at the present time.
Recently, an article on SmartMoney.com stated that there may be other reasons that potential homeowners may want to consider entering the housing market as the costs of acquiring a home loan and qualifications homeowners must meet in the future could cause more difficulty and disqualify some from receiving a home loan. This article made mention of proposals that could bring changes to the housing market that, while they may not be seen immediately, could cause mortgages to be more expensive, rates to increase, and the possibility of larger down payments may be required.
Again, these changes have yet to be passed and if they are to go into effect it may take a while before they are felt, but buyers who may be on the fence about purchasing a new home may be in one of the best positions currently since, again, home prices have dropped and interest rates remain relatively low for individuals who may qualify. However, it’s understandable that homebuyers should not rush into a mortgage agreement simply because rates are low and prices may be quite affordable as well.
While the first-time homebuyer tax credit allowed for more affordability last year, especially when it came to paying closing costs, homebuyers were given this rare opportunity to purchase a home with near record low interest rates and affordable home prices as well, but since the tax credit has expired, there has been a substantial decrease in the number of new homes purchased. Many feel this may be the result of uncertainty in the future of the housing market, as there are some analysts who feel home prices in certain areas may continue to drop, while others believe that many areas of the nation have found their bottom in terms of decreases in equity.
Typically, homeowners who may be in the position to take advantage of a home buying opportunity in the current housing market will need to have an excellent credit score, the ability to pay closing costs on a home loan, and obviously, homeowners will have to be in a stable financial position so that they may simply afford their mortgage payment from month to month.