Why NOW Is a Great Time to Get a Mortgage

Over the last several years, home prices have fallen and interest rates have followed suit. In 2011, it is likely that this trend will continue. With the low interest rates on new mortgages and the affordable prices of homes, now is an excellent time to consider purchasing a new home for you and your family.

Though there is not likely to be a sharp increase in value in the immediate future, purchasing a home right now is still a great investment. At some point, the market will trend back upward and the value of the home you have purchased will increase. In addition, this is the best situation imaginable in which a family can move to a bigger home without taking on a huge mortgage. You will likely get less for the home you are selling, but the amount you will save on the home you are purchasing will more than make up for this small loss.

We are currently in the midst of a buyers' market, and it doesn't seem like that will be changing any time soon. Anyone in a position for buying property should certainly consider doing so within the next year. Whether you wish to upsize, use your property to generate income through renting, or simply hold the property to resell in the future, buying a new home is a decision you will not regret.

If you are planning to move to a larger home in the near future, there is no better time to buy than now. Though you will likely lose some money if you have a home to sell, you can make all of that money back when you buy your new house. In addition, with mortgage rates being some of the lowest in history, you can lock in a low percentage rate that you will never want to change. If you have been previously paying at a high percentage on a less expensive house, it may even be possible to buy a bigger, nicer house at a lower percentage and end up paying the same monthly mortgage payment!

This is also a great time to purchase rental property to use as a source of constant income. With the low list prices and even lower mortgage rates, you can purchase an apartment building, duplex, or single family dwelling for an extremely reasonable monthly payment. You can then take on tenants and make a monthly profit. Because your mortgage payment will be much lower than it would have been in the past, you can charge typical rent charges and make a larger profit than ever before.

If you have a lot of capital to invest, this is also a good time to buy homes you plan to sell at a later date. You will not be able to make your money back right away, but if you wait awhile, the market will recover, and you can make a sizeable profit on your investments. This technique works especially well for purchasing foreclosures and new constructions at extremely low prices.

Regardless of the reason you decide to obtain a new mortgage, this is definitely a great time to do so. The mortgage rates are lower than they have been in years, thus allowing you to secure a monthly mortgage payment you can easily afford. In addition, the housing market has dropped and buyers can buy larger, nicer homes for much less than they are worth in many cases. This is a great time to invest in rental property or in homes to resell in the future. No matter what plans you have for your new mortgage, there has never been a better time to obtain a home loan.