You’ve heard it before but now you can see for yourself. For those in the market ready to purchase a home, the time is now. Experts in the field are touting that “if you don’t buy a house now, you’re stupid or broke,” as Marc Roth writes in Business Week. Marc Roth is the founder and president of Home Warranty of America, which touches just about every part of the real estate industry since it sells through builders, real estate agents, title companies, mortgage companies, and directly to consumers.
With interest rates at historic lows and trends forecasting that they will soon rise; home buyers may never see these rates again.
Scott Kolbe, Private Mortgage Banker of Wells Fargo Home Mortgage agrees with Roth and produced a report of the rates and trends dating back to 1972.
“This certainly is an excellent time to leverage property with a mortgage transaction and keep your money working in the market. The Dow has shown positive signs of growth and appreciation and using a mortgage will prevent you from liquidating money and missing that continued success. Also with very low rates the mortgage cost equated to a very low carry. Now is the time to buy,” states Kolbe.
Sara Boudarga who is handling sales for Signature Sotheby’s International Realty out at The Founders Club asked Kolbe to show two different finance options on her new Todd Johnston model home priced at $1,590,000. Option one is a 5/1 Libor ARM at 5.250%!!! Option two is 20-30 year fixed at 5.875%!!! These are certainly rates to take advantage of, especially in a jumbo product. Now is the time to further educate our clients and show that there is lending to be done and that this opportunity won’t last as interest rates will increase.
