Back in my school days, I had a teacher who’s favorite response when asked advice was to “do the math.” Whether it was about which girl to ask out, or which class to take, “do the math” was always the answer. Pretty sound advice too!
If you don’t own a home right now, and you are paying rent, its time to do the math. Home ownership isn’t for everybody, but it is an important component of your future financial health.
Here is a helpful calculator to help you “do the math,” courtesy of Ginnie Mae, aka Uncle Sam: (Use these numbers … 4.75% interest rate, 30 Year term, and 3.5% minimum down=payment. First time buyers may qualify for ZERO down, using a 4.85% interest rate. Visit www.thda.org for details)
Even if you already own your home, the low fixed interest rates of today probably have you thinking about that next home, whether larger or smaller. Go ahead and admit it. After all, now really is a great time to buy that new home you have always wanted. The perfect time may not be there for you down the road.
Recently, I heard another creative reason for now being the time to buy. If you wait much longer, interest rates will be substanitally higher. Those that took advantage of historically low rates will not be wanting to sell and give up their historically low interest rate for a higher one. If there is a home on the market that you like, and can afford, buy it.
Okay, so your existing home may not command the sale price it would have a few years back. Neither is the new home you are wanting to buy. Lose and save? Gain and pay? “Do the math.” When doing that math, keep in mind that your house is your home first, and investment second.
Have Questions? We have answers. Visit any of our www.OleSouth.com Greater Nashville New Home neighborhoods and explore all of your many options. We take the stress out of buying a home! And we’ll give you a stress ball too!
Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019 direct 615.593.6340. Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee