Forbes: Buy Now or Pay More Later?

time-is-money-173x200Sometimes the best advice really does come from experts.  For this reason, we want to quote a third party source today.  Forbes, in their online edition last week spoke of the importance of buying a home now rather than waiting.

The article, Should You Buy a Home Now or Pay More Later?, explains:

“With mortgage rates creeping up toward 5% as 2013 draws to a close, potential home buyers have some decisions to make – and soon.

The danger for potential home buyers isn’t that mortgage rates are nearing 5.00%; the real threat is that rates could go higher, to 5.50% or even 6.00% in 2014.”

The article spells our the financial consequences a buyer would face by waiting. ($67,746 on a $300,000 mortgage).

They went on to identify four things a buyer should take into consideration before delaying a decision to purchase.

  1. Rates will likely rise – and soon with 5% interest rates right around the corner.
  2. The Federal Reserve will start “tapering” causing rates to return to historically normal levels (6-7%).
  3. Home values are rising
  4. The autumn buying season is underrated “as you can take advantage of year-end tax breaks and the fall weather makes it an ideal time to move”.

Bottom Line:  The financial advice Forbes gave to their readers was rather simple.  Buy now or pay more later!!

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