Mortgage rates & renting?
I have a few questions here.. first bad i'll give some background. I'd be buying a home on my own w/ a net of 63,000/year, although i wouldnt necessarily say my job is the most stable... I'd practically drain my sandbank account for the 20% down payment, so i'd be departed with not much to fall put a bet on on. so here are the Q's...
(1) do you think mortgage rates will stay low over the next year? I'm considering renting for a while to let go up some more cash... but dont want to kick myself if rates travel back up.
(2) I see the housing market falling another 10% - do you agree?
(3) If i want to rent for a year, i plan on putting the majority of my money in a CD to earn interest. Any suggestions of other option i can briefly invest my money in?
Thanks!!
If this is your 1st home I would suggest going through your states 1st time homebuyer program, low interest rates and they only require a 3%-5% down payment also glorious yield savings accounts are paying complex interest than both cd's and bonds right now.
I'd buy very soon. Rates are pretty low right now 4.5%-5.5% depending on criteria. Your better off have a loant at 5% with PMI (putting less money down) than you are have a 6.5% with no PMI. Dont exhaust your savings. You can use assorted programs to reduce PMI. Some lenders like Bank of America, Quicken Loans, and Capital Mortgage Funding enjoy programs to take higher interest rates, or highly developed costs to get lower PMI.
Get seller concession on your purchase and the retailer can basically pay to acquire rid of the PMI. With us it costs about 1 point which the seller can payment for to reduce your PMI to $20 on a 150K loan.
If your worried about the housing flea market falling another 10% it depends where you live. In Michigan where housing have been beaten down for such a long time, those prices are something like at bottom. If your in an area where on earth your home values only came down surrounded by the last 18 months. Then the values do have a bit more to decline.
Investing to buy the home later is pointless. If you were to freshly buy the home now you would be putting more towards the equity than your earning contained by interest.
"> CDs and bonds right now.
No one know for sure what the mortgage rates and housing prices will be, although there are many inclined to guess.
Your plans are sensible. Also work to BUILD your credit rating whle you're waiting, pay all bills contained by full and on time, eliminate credit, don't fetch balances, etc. Source(s): tax pro
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(1) do you think mortgage rates will stay low over the next year? I'm considering renting for a while to let go up some more cash... but dont want to kick myself if rates travel back up.
(2) I see the housing market falling another 10% - do you agree?
(3) If i want to rent for a year, i plan on putting the majority of my money in a CD to earn interest. Any suggestions of other option i can briefly invest my money in?
Thanks!!
If this is your 1st home I would suggest going through your states 1st time homebuyer program, low interest rates and they only require a 3%-5% down payment also glorious yield savings accounts are paying complex interest than both cd's and bonds right now.
I'd buy very soon. Rates are pretty low right now 4.5%-5.5% depending on criteria. Your better off have a loant at 5% with PMI (putting less money down) than you are have a 6.5% with no PMI. Dont exhaust your savings. You can use assorted programs to reduce PMI. Some lenders like Bank of America, Quicken Loans, and Capital Mortgage Funding enjoy programs to take higher interest rates, or highly developed costs to get lower PMI.
Get seller concession on your purchase and the retailer can basically pay to acquire rid of the PMI. With us it costs about 1 point which the seller can payment for to reduce your PMI to $20 on a 150K loan.
If your worried about the housing flea market falling another 10% it depends where you live. In Michigan where housing have been beaten down for such a long time, those prices are something like at bottom. If your in an area where on earth your home values only came down surrounded by the last 18 months. Then the values do have a bit more to decline.
Investing to buy the home later is pointless. If you were to freshly buy the home now you would be putting more towards the equity than your earning contained by interest.
"> CDs and bonds right now.
No one know for sure what the mortgage rates and housing prices will be, although there are many inclined to guess.
Your plans are sensible. Also work to BUILD your credit rating whle you're waiting, pay all bills contained by full and on time, eliminate credit, don't fetch balances, etc. Source(s): tax pro
Related Questions: