11 May 3 Reasons Why You Should Buy A Fullerton Home Now
You may have heard that there is a shortage of Fullerton homes. There are too many buyers and not enough inventory, which is driving up the price of homes. So, why should you even consider jumping into that pool? Shouldn’t you wait until things “cool off” a bit before getting wet? The answer is a resounding, “NO WAY!” The cost of loans is rising, Fullerton home prices will not be leveling off any time soon, and the cost of renting is ridiculous.
1. Interest Rates are Rising
Interest rates are historically low, which is what is driving a lot of the Fullerton home buying frenzy. Buying now means you can lock in the current rate that seems to rise every month. According to FreddieMac, interest rates are hovering at around 4.5% for a 30 year fixed rate mortgage (May 2018). Keep in mind that for most of March and April of this year, rates were around 4.4% for a 30 year fixed. When 2018 began, rates were just below 4.0% for a 30 year fixed. Rates are rising and will continue to rise. What this means for you is that the cost to borrow money will continue to increase, making your monthly payments increase. Here is the cost of borrowing $500,000.
Amount Per Month on a $500,000 Loan for a 30 Year Fixed Mortgage
|Interest Rate by Month||Monthly Payment|
|FreddiMac 2019 Projected Rate 5.1%||$2,715|
2. Fullerton Home Prices are Increasing
In Orange County, home prices have increased 6.4% in the past year and are expected to rise 3.5% in the next year. What does this mean for you? With the median price of a single family home in Orange County at over $700,000, the sooner you buy, the more money you will save. Appreciation might slow down, but Fullerton home prices aren’t going down any time soon. So, if you were waiting for that to happen, you will be waiting a long time. Bonus: the sooner you buy, the sooner you will enjoy the same appreciation of your Fullerton home that other homeowners are experiencing.
3. Rents are on the Rise
The average rental goes for $3100 in Orange County. And honestly, your mortgage payment (including taxes and interest) might actually be more than that. But, if you are going to buy a Fullerton home and live in it long term, your monthly payment will remain the same if you have a fixed rate. Plus, there will eventually be an end to your monthly payments. Rent payments, on the other hand, are never ending and will rise over time. Also, don’t forget that Fullerton home ownership has huge tax benefits and appreciation will likely give you a great return on your investment. Rent is just paying someone else’s mortgage while they reap the benefits of home ownership. In the short term, renting might be a good option. But, in the long run, the benefits of buying your own Fullerton home greatly outweigh those of renting.
If you have been waiting for the right time to buy a Fullerton home, this is it. The longer you wait, the more interest rates, home prices, and rent will increase. Call the experts at Homearly to get all your questions answered.
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