If you think waiting to buy a Gulf Shores home until rates or home prices go back down is the smart way to go, you may be waiting for a long time.
With interest rates going up and home prices on the rise, you may think that it might not be the best time to buy a Gulf Shores home or even refinance the one you've got. But experts disagree. Should you buy now, or later?
Best Time to Buy a Gulf Shores Home is Now
One huge reason to consider now as the best time to buy a Gulf Shores home is mortgage rates. They're still around all-time lows now, but the interest rate for a 30-year fixed mortgage is expected to go up to 5 percent by the start of the fourth quarter this year and 5.3 percent by the end of 2015. That's according to a recent forecast by the Mortgage Bankers Association (MBA).
Just a quarter of a point higher interest rate can mean about $100 more each month on a homeowner's loan. For a lot of families, that can be the difference between being able to afford to buy a Gulf Shores home or not.
The good news is, credit score requirements for borrowers taking out mortgages to buy a Gulf Shores home are easing.
Summer is still the most popular time to sell or buy even for people without children. And it's not just because the weather is nicer. People just know there are more listings on the market during the spring and summer. But from a buyer's perspective, there is more competition from other buyers.
It is a significant purchase to buy a Gulf Shores home, but it's still cheaper than renting if you have the means to come up with the down payment and closing costs. Buying with a 30-year fixed rate mortgage of 4.5 percent is 38 percent cheaper than renting in most places. But as mortgage rates rise, that gap will narrow, unless greedy landlords decide to keep jacking up rents to match the interest rate increases.
Get lots of tips and advice for buying a Gulf Shores home at our Gulf Shores Home Buying Tips section of articles to your right just below our Gulf Shores Real Estate Categories.
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