Don't wait to buy a house

Are you a buyer on the fence about purchasing right now? Don’t hesitate. Buy now!!

Why? Because every day you wait is costing you money. Americas Mortgage Pros senior vice president Richard Martino recently joined Team TLC for a chat about the market. Martino shared his advice for buyers on the fence.

Buy a home

Here are 3 reasons why NOW is a good time to buy:

Tax advantage

You may be able to deduct mortgage interest and property tax payments, as well as certain other expenses, from your federal taxable income. This could save you money you would otherwise pay the government every year.

Future home appreciation

Home prices are going up. That means homeowners are gaining equity. Martino said that almost every year – with maybe the exception of 2008 – property values have gone up around the Tampa Bay area. So if you wait 5 years to buy – throwing away the rent money that could be going to your mortgage – and home prices rise by 5 percent every year, you would miss out on $125,000 in added value to a $500,000 home.

Future refinance

Yes interest rates are higher than they have been the past five years. But historically it’s at the same place as it was at the end of 1990 (Federal Reserve Bank data). The average 30-year fixed rate reached an all-time record low of 2.65% in January 2021 before surging to 7.79% in October 2023, according to Freddie Mac. But when someone points out that mortgage rates are painfully high right now, a well-seasoned homeowner is quick to chime in that when they bought their first house in the 1980s, the interest rate was 13%. In fact, mortgage rates have gone as high as 18.63% in October 1981. So by historical standards, today's mortgage rates are pretty on par with what homeowners have paid in the past. Since Freddie Mac began tracking rates in April 1971, the median 30-year mortgage rate is 7.41%. About where we are in 2024. So if the interest rate is scaring you, remember you can refinance when the rate drops. The rate is temporary, the house is permanent.

Median Mortgage Rate

1971-1979       8.89%
1980-1989       12.82%
1990-1999       7.88%
2000-2009      6.18%
2010-2019      4.03%
2020-Present 3.51%
* Freddie Mac

Want to know about programs you may qualify for or other ways we can help you get into a new home in 2024, reach out. We’d love to chat.

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