If You Don’t Buy A House Now….

Apparently “you are stupid or broke.”  He certainly didn’t hold back on his headline but it sure does get your attention and that is the point of a headline.

Well, you may not be stupid or broke. Maybe you already have a house and you don’t want to move. Or maybe you’re a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why: historically low interest rates.”

He is certainly right about the low interest rates although there is more to whether you should buy now or not such as how long you plan to stay in the home, do you have money left over after closing for maintenance, higher insurance, etc.  I really like a conference call I listened to the other day from Ed Conarchy on MortgageMarketGuide.com.  He said that Ric Edelman, a financial planner, said the other day on his radio show that 100% of the people are upside down……. on their car but you don’t hear anyone talking about that.  A car is a need and a lifestyle and that is how homeownership should be viewed.  That wasn’t verbatim what he said but you get the point. 

“What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.”

http://www.businessweek.com/lifestyle/content/dec2009/bw2009127_753974.htm