Tough times

It has been a while since I last posted and was trying to think what type of information would be most beneficial. We hear so much about interest rates being the lowest in years and how it is such a great time to refinance. This is true, however it is also important to realize what is a great rate and is it really my best interest to purchase a home or refinace durring these tough ecomomic times.

Being a mortgage broker you would think that I should say "everyone should purchase a home at their earliest possibility". Why pay rent when you can own and start building equity (asset value in a real estate purchase). Sometimes it is far better to rent! More important you need to make sure that when you are buying a home that you have some financial cushion or resources to make it through the various challanges or responsibilities of life. We live in an age where everyone wants something fast, now and easy. The reality is that most good things in life take time, energy and work.

Are you prepared or have you started to save for not only a down payment, closing costs (legal bills, moving costs, etc.) and the ongoing maintenance that are part of home ownership? Do you have adequate savings that would cover at least 3 months of your monthly obligations in event you lost your job, became ill or other life change? If not, then perhaps making that home purchase today should perhaps wait until you are better prepared.

If deep inside you are somewhat skeptical or feeling reservations about buying a home or using the equity in your home to pay out some debt, just because your bank or broker is telling you that now is the time because rates will never be this low again! Just remember, are you prepared for the rough times... If yes then perhaps they are right. If not, then wait because the best rate is the rate of the day when you know that you are well prepared and have your financial house in order!

These are tough times. BE SMART... ASK QUESTIONS...GET ANSWERS!