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Why It May Be a Great Time for You to Buy a House

Buying a house is a very personal decision. As things stand right now, there is no telling how the lowered rates are going to prompt people looking to buy houses. In a bid to counter economic slowdowns and disruptions arising from the rapidly spreading coronavirus, March 15th saw the Federal Reserve make yet another emergency cut to interest rates. The latest move by the Fed has become the most significant emergency reduction in its entire 100-year history. So is now the time to buy a house?

The move is meant to encourage more money into the economy and lure businesses to continue investing. Financial analysts and property market observers foresee that this move is sure to induce a lot of borrowing and spending. 

So now may actually be a good time to buy a house. Here is how you stand to benefit as a home buyer and make the most out of the lowered interest rates to acquire a property.

1. Take advantage of the now subsidized Home Equity Line of Credit (HELOC) Rates 

If you are looking to buy a house on credit, now would be an excellent time to try out a Home Equity Line of Credit option. Rates on HELOCs have fallen hugely. The lower rates have seen prospective homebuyers become the biggest winners in the ongoing turn of events. Since interest rates on HELOCs are pegged on the prime rate, the falling of rates means lower borrowing costs. This is because prime rates follow any adjustments that are made by the Fed.

This is beneficial to anyone looking to buy a house as it provides arguably one of the most economical housing solutions at hand in the property market. This move is likely to attract and steer higher customer numbers looking to benefit from the prevailing circumstances. This will have a ripple effect not just on the residential but on the entire property market.

2. Take advantage of the historically low mortgage rates

With the Federal Reserve having lowered rates, the rest of the financial market reacts accordingly. This means that home buyers get an opportunity to obtain mortgages more advantageous to them. These mortgages have lower interest rates, something that spells out long-term financial benefits for the home buyer.

To reap from lowered mortgage rates as a prospective house buyer, you would want to take an interest in the Adjustable –Rate Mortgage(ARM) option. When taking up this kind of mortgage, especially now that the Fed has lowered mortgage rates to zero, you will need to consult widely. 

Engaging someone with expertise in this field, preferably someone well versed with how buying a house in a specific area you wish to buy one, is very important. You will need their advice and expertise as you look through details such as the various mortgage types, whether the mortgage is fixed or adjustable, and the rate to which the mortgage is linked.

3. Take advantage of the dip in home financing costs

One of the significant reap offs since the Federal Reserve slashed interest rates is the reduction in the price of financing a home. Any serious player in the housing sector will tell you that today is the appropriate time to source for financing to buy that house you have been looking for. 

The presently available low-price financing by lenders and the government could generate bigger returns for your house investment even if you are looking to resell later. Seeking alternative financing for buying that house you have been looking to buy could be quite a considerable gain. In the long run, alternative financing could see you spend less yet attain more excellent value as compared to taking a mortgage. 

The rate cut by the Fed has greatly reduced interest payments on home financing. This could see prospective house buyers save a lot of money that would have otherwise been incurred as interests.  

During these uncertain times that we are dealing with COVID-19, it’s actually the perfect moment for you to buy your dream house. If you are considering buying a new house, feel free to contact us today for more information.

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Zillow user Jamisonrp

Sold a Roxborough home in 2017

"Trish is amazing! Trish was my agent when I bought my home in Philadelphia, so of course I went to her when I was ready to sell. Despite an election and the holidays, she was able to have my house sold by the time frame I needed to move. Trish was always helpful with guiding me through the  process of paperwork, staging my house, and even went to my closing for me because I was out of town. She was always professional and incredibly knowledgeable about the market, comps, and finding appropriate potential buyers."

Zillow user Radcliffe Beverly

Sold a Phoenixville home in 2015

"Trish Puleo exceeded my expectations during the process of selling a home that was part of an estate. Since I was out of state, she offered to check on items and secured vendors to fix some repairs that were needed. She is responsive, knowledgeable, and thorough. She followed up on all showings  and got answers to questions from potential buyers even when I did not know the answer. I felt she always had my back especially with the settlement process since I was not planning on attending. I would highly recommend making Trish your partner in getting a house sold." 

Zillow user Abjkl

Bought a Phoenixville home in 2017

"We were first time home buyers who underestimated the details of what on the surface seemed to be a standard, as in everyone has the same forms and procedures and ethics, home buying process. Trish is an experienced  professional who brought with her calm sensibilities, timely and accurate communication, and complete knowledge of the requirements, timelines and paperwork. She was reassuring, helpful and on our side when we needed it most! Only wish we would have included her the moment we decided to buy a house!"

Zillow user Applescriptguru

Bought and sold a Phoenixville home

"Trish is an excellent realtor and property manager. She’s friendly, professional, honest, dependable, responsive, and knows the Phoenixville area intimately. We’ve been extremely happy with her services, and will recommend her to anyone."

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