Don’t Wait Too Long To Buy

I’ve said it before, rates are at an all-time low. The benefits to a buyer are numerous, and if you are considering buying a home now, it’s time to act before rates go up. I’ve put this infographic into this post to note some of the important points for Costa Mesa real estate buyers, and I’d like to remind you some of the other benefits.

 

As the infographic points out, obviously as rates are lower, so is your monthly payment. What’s important to think about is that these rates will not be here forever. The difference between 3.5% and 6% (which used to be a normal/reasonable/low rate) is tremendous, especially for Costa Mesa real estate buyers. Consider the typical mortgage of Costa Mesa real estate purchase of about $600,000: if you put down 20% ($120,000), you would have a conforming mortgage of $480,000. On a 3.5% rate, that is a monthly payment of about $2155, not considering taxes and insurance. A quick comparison to when Costa Mesa real estate rates were 6%: Your payment would be $2877. Now I don’t know about you, but I’ve got a lot of good smart ways I can spend $700 per month. College savings. HSA health savings plan. Retirement Savings. I could go on and on…

 

Two quick other ways to benefit from these historically low Costa Mesa real estate rates: Invest or Move Up/Move Down. Investing now is super savvy. There are lots of good rental properties to buy in Costa Mesa real estate, rents are high, and it provides a great hedge against inflation in the future. Warren Buffet just recently invested in real estate companies, and I don’t think he’s been wrong too often.

 

The people that will benefit the most right now, aside from first-time buyers, are the move-up/move-down crowd. As I posted in the past, this is the group that has the most to gain from these rates.

 

Consider this – selling now, in a market with little inventory, where you will get your price is smart. Buying a bigger house for a growing family makes a lot of long-term sense with a lower, manageable payment. Or, perhaps you are an empty nester with lots of house and no kids. Selling the big home and purchasing a small, comfortable one-story would likely help you cash out, put money in your pocket, or provide a new loan at super low rates that are manageable for your future.

 

Need help? Think differently? If you are interested in learning more about Costa Mesa, please call local expert/Broker Colin Delaney at (714) 743-9882 or E-mail me.