You’ve probably heard in the news that real estate values have plummeted in a majority of markets across the country. This has been going on for some time now, and a lot of people who are in thinking about buying a home may be hesitating because they aren’t sure if prices have bottomed out. However, recent data from the National Association of Realtors and others seems to indicate that a rebound is underway nationally. Of course, real estate in general is very much a localized thing in spite of strong national trends so due diligence is always critical. That being said, there are many areas of the country where it is very much a buyer’s market. Another key factor for most folks considering a home purchase is, of course, financing. With the recent news that the Federal Reserve will be rolling back their bond buying, signaling the end of “cheap money”, people may be more willing to take on the risk of purchasing a home where it isn’t clear if the bottom has been reached. Overall, the prospect of locking in historically low interest rates does seem very enticing. Check out the video below for more tips on buying a house.
Mortgage loans and finance in general can be a daunting topic. The seemingly endless options, the obscure lingo, and the math can be enough to confuse the uninitiated. Luckily, there are many resources at our disposal to make sense of this crucial aspect of real estate. If you are willing to take the time to learn even the basics, you will find it is not rocket science. Whether you are buying your first home or you are a seasoned investor, having a handle on the financing side of things is a huge advantage and at the very minimum will empower you ask the right questions. Below is a great video by Khan Academy discussing the essentials of mortgage loans.