Buying a Home When Prices are Low

Throughout the country, the prices of homes are still very low. And while that is not-so-good news for the folks who are trying to sell, it's making for some good deals for potential home buyers. In fact, home sales are the lowest they have been in years in many places.

Many people are hesitant to buy homes when no one else seems to be doing it and concerns about further depreciation have also kept many people in their rentals or apartments. But a smart investor and consumer will recognize opportunities to take advantage of good deals.

Buying during a slow housing market is advantageous for many reasons.

First of all, sellers may set their asking prices lower and are often more willing to offer the paying of closing costs, leaving appliances and doing repairs. They might also be more likely to accept offers for less than the asking prices.

Interest rates are also still very low, so you can save even more by financing before the next rise in housing. Ask about alternatives such as bi-weekly payments or Adjustable Rate Mortgages (ARMs). Bi-Weekly payments can significantly cut the term over a traditional mortgage payment and save you tons of interest. By paying more frequently, the principal is reduced faster. ARMs have gotten a pretty bad reputation, but can be a good choice depending on your needs and the terms of the loan (such as how often and how much the rate can adjust).

If you've been holding off on buying a home, see what's available in your area, and meet with a loan officer at your bank or credit union to see if it makes sense for you.